In order to mitigate risk, it is important to put on a junior starter position of 1/2 of a normal-sized position or less. This can be added on to should the position move in the correct direction. As far as actual position size goes as a percent of your account, that is a matter of personal taste. Some people like two or three names, while others prefer 20. For most people, 5-10 makes sense. I can tell you what I do, but that may not necessarily be what is best for you.
In the right type of market, with dozens of growth stocks building bases and breaking out, I target five positions. E.g., I would start with 5% in a position and use a 5%-7% stop, usually. With a stopout at 7%, my account loss is only 0.35%. I consider this minimal compared to the return potential of being in leadership names in the right type of market. Should the position move in my favor, I will then add on an additional 5% so that I am at 10% of the account. I will then add on two more of these 5% positions so that I have 20% in one stock.
I repeat this process with four other names to become fully invested. As time goes on, I will sometimes exit the laggards of these and direct money toward the bigger account performers. This force-feeding process may leave me with three or four positions ultimately.
My goal is to end up with three to five names, but some cycles it may be seven if I do not have the confidence in either the general market or the actual leaders themselves. While three to five names is considered aggressive, the way I get there is fairly conservative, at least in my opinion.
I hope this is helpful. “Better safe than sorry” is a good motto. Again, position sizing is a personal decision. It depends on each trader’s temperament, experience, and risk tolerance, among other things. If you are ever worried about your account, then that is a sign that position sizing is not optimal.