Understand the numbers first
These calculators are teaching tools. They show what a move is worth in both directions, what it costs, and how much a loss has to be recovered. They do not suggest trades and they do not predict outcomes.
Lesson one: think in shares, not just stock price
Beginners usually watch the share price. What actually decides the outcome is the movement per share multiplied by the number of shares you hold.
A $2 stock. 100 shares. That is a $200 position.
100 × $2.00 = $200
Favourable: 100 × $1.00 = $100 gross
Adverse: 100 × −$1.00 = −$100 gross
The same maths works both ways.
Fees and the spread apply in both directions too, so the real figures are slightly worse than the arithmetic in both columns.
What a move is worth
The same maths applies in both directions. Both outcomes are shown.
- Capital committed
- $250.00
- Gross on a favourable move
- $100.00
- Net after costs
- $98.00
- If the move goes against you
- $-102.00
This is arithmetic, not an expectation. A favourable move of this size may not happen.
What happens if it goes against me?
Position size affects gains and losses equally. Work this out before you work out what you might make.
- Capital committed
- $200.00
- Gross loss
- -$50.00
- Loss after costs
- -$52.00
- Percentage of the position
- 25.0%
There is no universally correct risk percentage — that depends on your circumstances, and AlphaRadar will not prescribe one. What is universal is that the size you choose determines the size of the loss.
What would a monthly target actually mean?
This divides a number by another number. It is a mathematical illustration only — markets do not produce a fixed amount every day, and losses are possible on any day.
- Mathematical daily average
- $100.00
- Per share, on this size
- $1.00
| Movement per share | Shares required for the daily average | Capital that size implies at $2 |
|---|---|---|
| $0.20 | 500 | $1,000 |
| $0.50 | 200 | $400 |
| $1.00 | 100 | $200 |
Mathematical illustration only. This is not expected income, not a target you should trade towards, and not an outcome anyone can promise. The same share count that produces these figures produces losses of the same size when price moves the other way.
Position size
Shares = risk amount ÷ (entry − stop). Your stop distance sets your size.
- Risk amount
- $20.00
- Shares
- 99
- Capital committed
- $297.00
- Worst case including costs
- -$22.69
Costs shown are estimates. A stop does not guarantee your exit price in a gap or a halt.
Drawdown recovery
Losses need larger percentage gains to recover.
- Drawdown
- 40.0%
- Gain required to recover
- 66.7%
Expectancy
Win rate alone tells you very little. This combines it with the size of wins and losses.
- Expectancy per trade
- $12.00
- Over 100 trades
- $1200.00
Past expectancy does not carry forward. This is a review tool, not a projection.
The honest version
Most people who trade actively do not make money. Fees, spreads and slippage are certain; profits are not. Never trade money you cannot afford to lose, and treat any figure produced here as arithmetic rather than an expectation.