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Learn/Portfolio basics
beginner5 min read· Portfolio basics

How to size a portfolio

Deciding how much capital to allocate per position prevents any single trade from wiping out your account. A common rule is to risk no more than 1-2% per trade.

Portfolio sizing is the decision about how much of your total capital to put in each trade. Getting this right is the difference between surviving a bad streak and blowing up your account.

A common rule is to risk no more than 1-2% of your total account on any single trade. If you have $10,000, risk $100-200 per trade. This sounds small, but it means 50 consecutive losing trades could not wipe you out.

Equally weighting a portfolio means splitting your capital evenly across all positions. If you have 5 positions and $10,000, each gets $2,000. This is simple and prevents any single stock from dominating.

Over-concentration is when one position represents too large a percentage of your portfolio. A 50% position that loses 30% costs you 15% of your total account. A 10% position that loses 30% only costs 3%.

TuraTrade portfolio templates use equal weighting by default, splitting the starting capital evenly across all picks. This is a good starting point for beginners.

Practice what you learned

Build a simulated portfolio from yesterday's movers and see how these concepts play out with real market data.