This app helps you to open the right position size per trade. It uses the 2% rule in risk tolerance, which is ajustable according to the individual profile (Usually between 1% and 5%).
When we decide to execute a buy or sell operation on the stock market, we have to consider a VERY important point regarding the size of the exposure. Behavioral studies show that when an investor loses more than 3% of his equity in a single operation, he becomes psychologically affected in such a way that his rationale for an efficient risk management is lost.
It is very important to limit the level of exposure per transaction. This application calculates the loss of the position in case of a stop loss and ensures that if this happens, the loss is not greater than the percentage of portfolio value inserted in the Risk Sensitivity.