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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (70579)

2/7/2026 5:14:25 PM

From: Johnny Canuck

Read Replies (1) | Respond to of 70741

Grok Question:

calculate the specific "Position Size" for each of these based on a hypothetical $10,000 trade so you can see the dollar-at-risk for each volatility tier

Answer:

calculate the position size for a $10,000 trade, we use a Risk-First Approach. Instead of just buying $10,000 of a stock, we determine the amount to invest based on the "Maximum Dollar Loss" you are willing to accept if the trade hits your stop-loss.

For this example, we will assume a 2% Portfolio Risk per trade ($200 total risk).

2026 Semi-Sector Position Sizing MatrixPrices reflect early February 2026 market data.

Ticker	Beta / Risk	Entry Price	Stop-Loss	Loss per Share	Shares to Buy	Total Capital Invested
Broadcom (AVGO)	1.2 (Low)	$333	$315	$18	11	$3,663
SMH (ETF)	1.0 (Med)	$401	$375	$26	8	$3,208
NVIDIA (NVDA)	1.8 (Med)	$181	$165	$16	12	$2,172
Micron (MU)	2.3 (High)	$395	$355	$40	5	$1,975
Marvell (MRVL)	2.6 (Spec)	$75	$65	$10	20	$1,500