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    This document outlines different wealth levels that can be achieved with varying position sizes and risk levels in the stock market. It shows that taking a 1% risk of account size and holding that position for a year could achieve a wealth level of 5x the initial investment, while a higher 3% risk level could only reach a 3x wealth level and has a greater chance of losses. Taking too high of a risk above 3.5% of the account is not recommended as it may not lead to long term wealth creation and has a high probability of losses.

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    This document outlines different wealth levels that can be achieved with varying position sizes and risk levels in the stock market. It shows that taking a 1% risk of account size and holding that position for a year could achieve a wealth level of 5x the initial investment, while a higher 3% risk level could only reach a 3x wealth level and has a greater chance of losses. Taking too high of a risk above 3.5% of the account is not recommended as it may not lead to long term wealth creation and has a high probability of losses.

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    9 views1 page

    Sodapdf

    Uploaded by

    thetrade180
    This document outlines different wealth levels that can be achieved with varying position sizes and risk levels in the stock market. It shows that taking a 1% risk of account size and holding that position for a year could achieve a wealth level of 5x the initial investment, while a higher 3% risk level could only reach a 3x wealth level and has a greater chance of losses. Taking too high of a risk above 3.5% of the account is not recommended as it may not lead to long term wealth creation and has a high probability of losses.

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    of 1

    WEALTH CREATION

    WEALTH 5 500 1000 2000 4000

    4.5 450 900 1800 3600

    4 400 800 1600 3200

    3.5 350 700 1400 2800

    3 300 600 1200 2400


    RICH

    2.5 250 500 1000 2000

    2 200 400 800 1600

    1.5 150 300 600 1200


    SERVIVE

    1 100 200 400 800

    0.5 50 100 200 400


    POSITION SIZE 10,000 20,000 40,000 80,000
    BUY LONG ENTRY
    STOP LOSS

    0.5 50 100 200 400


    GOOD RISK

    1 100 200 400 800

    1.5 150 300 600 1200

    2 200 0 800 1600


    BAD RISK

    2.5 250 500 1000 2000

    3 300 600 1200 2400

    3.5 350 700 1400 2800


    WORST RISK

    4 400 800 1600 3200

    4.5 450 900 1800 3600

    5 500 1000 2000 4000

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