"Rule #1: Protect Your Money . . ."
Rightline is serious about protecting your hard earned capital. Our Risk Control Calculator is a powerful, yet simple tool that lets you manage risk before you buy a single share of stock!
Here's what it looks like: (This isn't the actual calculator, it's just an image.)
Here's how it works:
1. Enter your information into the top-left section.
- Total Account Value - the combined value of cash and stocks you have in your investment or trading account.
- Round Trip Broker Fee - the amount you pay to your broker to buy AND sell these shares.
- Maximum Allowable Risk - The percent you enter here depends on your personal risk tolerance. We recommend no more than 4 to 5 percent - 2% is even better.
2. Enter the information we email to you into the top-right section.
- Share Price - The price of the stock presented in the RightLine Reports.
- Stop Amount - The number of points at risk.
3. Select "Calculate" - the results will appear in the bottom section of the calculator.You will see the total cost of the shares including your broker fees, the total amount at risk in dollars, the specific percentage of your total account at risk, and most important calculation of all . . .
- Maximum Number of Shares to Buy - This number is the most significant aspect of the RightLine Risk Control Calculator. Buying too many shares of a single stock is one of the most dangerous actions an investor or trader can take.
BOTTOM LINE: The risk calculator keeps your portfolio in a low-risk zone by maintaining a safe relationship between the number of shares you buy AND your total account value.