INVEST COMPOUND ACADEMY

Position size

See how one holding can affect the portfolio when it moves sharply against you.

Portfolio value $100,000Position weight 10%Position decline 30%

Portfolio impact—The calculation isolates one position and does not model simultaneous moves elsewhere in the portfolio.

What this teaches

Position sizing converts an investment idea into portfolio risk. A 50% decline in a 4% position has a very different portfolio effect from the same decline in a 30% position.