Understanding position size and diversification

Position size determines how much one stock affects your portfolio. Holding several stocks can still leave highly correlated risk if they share a sector or growth theme.

Unrealized gains are not realized returns. Consider potential drawdowns across scenarios, your time horizon and the level of loss you can tolerate.

This tool explains simple single-position P&L. It does not calculate full portfolio risk, volatility or correlation, and recommends no stocks or trading times.