Work a stock-sizing example

A sizing worksheet answers a conditional arithmetic question: how many shares fit a chosen scenario budget if the assumed entry and exit occur? It does not decide what you should risk. For a simple long-stock example with entry above a planned stop, divide the hypothetical dollar budget by the difference per share, then round down to a whole share.

Next check the cash requirement. A count that fits the planned-loss scenario can still require more cash than the example allows. Fees and any modeled allowance also consume the budget. State whether they were included. A calculator that omits them should say so and should not present a frictionless answer as an all-in limit.

Finally, challenge the assumption: what if the actual exit is lower? Recalculate rather than calling the first result a protected maximum. This tool is for a simple long-stock illustration, not short stock, margin liquidation, futures or options. Invalid input deserves a clear error, particularly a zero price difference or a stop at or above entry. Correct arithmetic is useful only when its scope remains visible.