A position size is how much money you own of a single stock.

So, if you have $10 of Tesla, your position size is $10.

Try going to your Portfolio Analysis to see how much money you have in each stock.

That’s your position size!

Larger position sizes increase your potential profits, but also increase potential losses.

A position size of $100 in Tesla risks $100, meaning that if Tesla’s stock price goes to $0, you would lose $100.

Meanwhile, a smaller position size of $10 in Tesla, only risks $10.

Therefore, position sizes are one way that investors manage risks and reward. ⚖️

And position sizing is having a strategy for deciding how much to invest in a single stock to safely manage risk and reward 💪

Over the next lessons, we’ll help you develop a specific strategy for position sizing that fits your investment goals 🥳