Mark Minervini's position sizing guidelines

 Mark Minervini's position sizing guidelines emphasize risking no more than 1.25% to 2.5% of total equity per trade, limiting stop-losses to a maximum of 10%, and never allocating more than 50% of your portfolio to a single position. 

Here's a more detailed breakdown of Minervini's position sizing approach:

• Risk per Trade:

  Minervini recommends risking a maximum of 1.25% to 2.50% of your total trading capital on any single trade. 
• Stop-Loss Limits:

  He advises limiting stop-loss orders to a maximum of 10% of the initial position size. 
• Average Loss:

  He suggests that average losses should not exceed 5%-6% per trade. 
• Portfolio Allocation:

  He advises never allocating more than 50% of your portfolio to a single position. 
• Scaling into Positions:

  Minervini often scales into positions, meaning he starts with a smaller position and adds to it as the stock moves in the desired direction, rather than averaging down. 
• Cushion for Earnings:

  He emphasizes having a profit cushion before going into earnings reports, as earnings announcements can cause significant volatility. 
• Position Sizing Adjustment:

  Minervini suggests adjusting position size based on individual risk tolerance and the potential volatility of the stock, especially when approaching earnings reports.