The 1% Rule - How To Proportion Risk

Do not risk more than 1% of account on any one trade.

How to connect appropriate ACCOUNT RISK to your TRADE RISK:
ACCOUNT RISK PER TRADE = ACCOUNT SIZE x 1%
TRADE RISK = ENTRY PRICE - STOP LOSS EXIT PRICE

And so, the number of shares to purchase:
SHARES TO TRADE = ACCOUNT RISK PER TRADE / TRADE RISK

Or, the number of contracts to purchase:
CONTRACTS = ACCOUNT RISK PER TRADE / (TRADE RISK x DELTA x 100 Shares (per option contract))

When to Stop trading on any day:
Stop, If you are down 3% in one day
Stop, if you are down 15% in one week