Position Sizing Risk Calculator & VVIP SOP Guidelines for Bursa Traders
Long-term trading success in Bursa Malaysia depends 80% on risk management and position sizing discipline, rather than market forecasting ability.
Position Sizing Rules
Maximum Risk Ratio per Trade: Never risk more than 1% to 2% of your total trading account equity on a single position.
Example Calculation:
- Total Trading Capital: RM 10,000
- Maximum Loss Risk per Trade (2%): RM 200
- Stock Entry Price: RM 0.50
- Stop Loss Level (Floor -2%): RM 0.48 (Per-unit risk = RM 0.02)
- Max Shares to Buy: RM 200 / RM 0.02 = 10,000 units (100 lots)
By enforcing this mathematical position sizing, even suffering 5 consecutive losing trades results in a manageable 10% drawdown, preserving capital for future high-probability setups.