Determining how many shares to buy depends on your , risk tolerance , and diversification goals . Most financial experts recommend focusing on the total dollar amount rather than the number of shares, as share price is arbitrary and does not reflect a company's total value. 1. Follow the "1% Rule" for Risk

Professional traders often limit the risk of any single trade to . This ensures a losing streak won't wipe out your capital.

: To find the exact number of shares to buy, use the Position Sizing Formula :

: If you have a $10,000 account, a 1% risk limit means you can afford to lose no more than $100 on one trade .

Example : You buy a stock at $50 and plan to sell if it hits $45 (a $5 risk per share). With a $100 account risk, you would buy ($100 / $5). How Many Stocks Should I Own? - SoFi

Number of Shares=Account Risk ($)Entry Price−Stop-Loss PriceNumber of Shares equals the fraction with numerator Account Risk ($) and denominator Entry Price minus Stop-Loss Price end-fraction