Position Sizing Quick Check

Pro v1.0.0 1 view

Simple rules for how much to invest in individual stocks based on your risk tolerance. Get a quick sanity check on whether your position is too large.

What You Get

Avoid over-concentration risk with simple position sizing rules. Get immediate feedback on whether your planned or current position is too large for your risk tolerance.

The Problem

Individual investors often over-concentrate their portfolios in one or two stocks without realizing the risk. They struggle with basic questions like 'Is 20% in one stock too much?' and lack simple rules for position sizing based on risk tolerance and stock quality.

The Solution

Apply time-tested position sizing rules based on two factors: risk tolerance (conservative/moderate/aggressive) and stock type (blue-chip/growth/speculative). Get immediate feedback on whether a position is too large with specific dollar recommendations for trimming or sizing. No complex portfolio analysis—just a quick sanity check using simple percentage thresholds.

How It Works

  1. 1 Classify the stock as blue-chip, growth, or speculative based on business maturity
  2. 2 Determine risk tolerance level (conservative, moderate, or aggressive)
  3. 3 Apply position sizing threshold rules using simple lookup table
  4. 4 Calculate whether current or planned position exceeds the maximum allowed percentage
  5. 5 Provide specific dollar recommendations for trimming overweight positions or sizing new investments
  6. 6 Run basic portfolio concentration check (top 3 positions, single position limits)

What You'll Need

  • Risk tolerance level (conservative, moderate, or aggressive)
  • Stock type classification (blue-chip, growth, or speculative)
  • Total portfolio value in dollars
  • Either current position value OR planned investment amount

Get This Skill

Requires Pro subscription ($9/month)

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Examples

Aggressive Investor: Biotech Severely Overweight

An aggressive investor holds $120,000 in a speculative biotech stock within a $500,000 portfolio. At 24%, this is 3x the 8% speculative limit. The skill recommends trimming $80,000 with tax-aware execution guidance.

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Conservative Investor: Apple Position Within Limits

A conservative investor checks whether an $8,000 Apple investment is appropriately sized for their $100,000 portfolio. The skill confirms the position is within the 10% blue-chip limit and provides guidance on monitoring.

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Moderate Investor: Tesla Position Too Large

A moderate investor wants to invest $30,000 in Tesla with a $250,000 portfolio. The skill flags this as 12% (over the 10% growth stock limit) and recommends reducing to $25,000.

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