 Hey guys, welcome back to another episode of trading basics. I'm Joe Kelly in this episode what we're going to go over is we're going to go over position sizing and using a position sizing calculator now there are two Schools of thought that I'm going to go over here One is going to be risking a percentage of your account on each trade and another is going to be risking a max dollar amount per trade based on whatever you Want to input now. I've made four different calculators that you can download and save for your ex yourself and Go back and use whichever one sounds the best to you But I'm going to do a quick overview of each of these and then the link and I'm going to say this like four times because I know There's going to be direct messages about this the link to these calculators are going to be below the video What I'm going to do is I'm going to show you each of these so this example would be if you want to risk a percentage of your account Your question as a trader as a newer trader as a more advanced trader Intermediate you have determined what your comfort level is for risk, but as a newer trader It's hard to know we as newer traders will look at the Max profit available and we'll say we want to make $500 so we need to short or buy This number of shares in order to do that, but in reality we're taking an unnecessary amount of risk Now we have the same two Examples dollar amount per trade or percentage of account so In this example up here, we have ten thousand dollar account on ticker XYZ We want a stop at 384 and now we have a profit target of three Okay, so this is a little different Now you have a stop loss that you say if it breaks this level I'm going to stop out, but I want to take my profit at three so in order to get two to one risk reward What you have to do is let me go ahead and color code these cells what you have to do here is You have to input this yourself. Let's say you want three to one You should always leave a one right here. Obviously. You don't want to like put three to two because that'd be weird but You always want three to one or you want two to one or whatever you want Now what we have here is let's go ahead and format this and And do this here Center that up. So now if we have a 1% risk of our account. Okay, it's going to be equals