Why Risk Tools Exist
Making money is only half the battle. Keeping it is the other half. The Risk page gives you tools to control how much you can lose on any single trade, how your stocks relate to each other, and what would happen to your portfolio in a market crash.
Professional funds spend more time on risk management than on picking stocks. These tools bring that same discipline to your trading.
Position Sizing Calculator
The position sizing calculator answers: "How many shares should I buy?" You enter three things: your total account size, the maximum percentage you're willing to risk on this trade, and where your stop loss will be.
For example, if you have $10,000 and are willing to risk 2% ($200) on a trade with a stop loss $5 below your entry, the calculator tells you to buy 40 shares. This protects you from losing too much on any single trade. Learn more about risk numbers in Risk Metrics That Matter.
Risk Metrics Dashboard
The dashboard shows your portfolio's overall risk numbers: VaR (your likely maximum daily loss), Sharpe ratio (return per unit of risk), beta (how much your portfolio moves with the market), and max drawdown (the biggest drop you've experienced).
These numbers connect to your actual portfolio, so they update as you add or remove positions. If your VaR suddenly jumps, it means your portfolio just got riskier — maybe you added a volatile stock.
Correlation Matrix
The correlation matrix shows how your stocks move relative to each other. A correlation of +1 means they move exactly together. Zero means they're independent. Negative means they move in opposite directions.
If most of your stocks have high correlations with each other, you're not really diversified — they'll all drop at the same time in a downturn. Try to have a mix of low-correlation stocks so when some go down, others hold steady or go up.
Portfolio Stress Test
The stress test asks: "What would happen to my portfolio if [bad thing] happened?" It simulates scenarios like a market crash, a sector collapse, or a sudden spike in interest rates.
For example, it might show: "In a 2020-style crash, your portfolio would have lost 28%." If that number makes you uncomfortable, you know you need to rebalance toward safer positions before the next downturn hits.