@MegaDayTraders @_BuddhistTrader We do recommend asking questions on the forum as a response to the post/article. This allows other traders who read the article to benefit from the question and respond with their insight/perspective. Plus, more than 280 characters will help when explaining this.
@MegaDayTraders @_BuddhistTrader Happy to try to help here.
This calculation is just the mathematical way of showing how share price, # of shares, and your stop target can be used to calculate your total expected loss (risk) should your trade go in the wrong direction. Is there a specific part we can help with?