Question on risking 1%

I am risking 1% now at the moment. I am confused which is better for long term. Let say I have $1000 capital and I risk 1% ($10) and I won that trade. Will it be better for my next trade to risk $10 again or $10.10 Since the 1% got bigger.

Another alternative I thought was to risk 1% every month of my current capital. Eg: my capital this month is $1000 so i risk consistently $10 on every trade until the end of the month before risking a new 1% amount. Which is better for growth? Thank you.

it sounds good risking 1% only , but managing this percentage for all time in a proper way is much difficult , because there is no chance to calculate the real faction of this market with certainly and most of the time market moves at random , so i don't think so, managing 1% risk ratio can be sustainable, not realistic

You are NEVER going to grow an account to meaningfull levels risking 1% per trade.. ever.. period Why? because for the next trade you "advance" 1% of the new capital for the next trade ( oh cool its getting bigger lol) BUT if you lose you are now risking 1% LESS for the next trade.. so it works both way in favor/against you at the same time (not the best aproach)

Generally speaking, risking super low amounts its just a crutch for a fail/inneficient trading aproach, where the trader doesnt have any idea when hes going to lose and therefore he NEEDS to "risk" a small amount just to have a small chance of survive in the mid term (long term its almost sure hes going to lose the account.. death by a 1000 cuts)

I think, particular risk reward ratio is much useful than changing the parameter based on profit or loss.

<p class="MsoNormal">Agree, &nbsp;particularly risk ratio always supportive to minimize the risk , even though market moves at random by and large.&nbsp;</p>

But u can't be using the same amount the whole time, how do you know when is the right time to increase your risk? Because if let say you have a 1:2 risk to reward ratio, so you earn $20 when you win. Maybe you managed to grow your account to a certain level and now you want to grow to the next level so you increase the amount. Now if u lose, you might be losing $20 on each trade and it kinda defeats the purpose of all the previous trade of R:R of 1:2 becoming 1:1.

nice reply , thanks , agree completely.

It is right that you think about risks and want to understand all the nuances and difficulties that may be present in the market. Because you really should think about it in advance, because you do not know at what point the market can offer you some unpleasant surprise. And it will depend on your literacy, knowledge and pre-determined risk calculation whether you will cope with this situation or lose your money. Because everyone who does business, and trading is the same business as any other, must have a well-thought-out and structured plan of action, which will allow you to move forward and find a way out of the most difficult situation or not to get into it at all.

Of course not, 1% is low. For long-term trading, you should put at least 10% of the deposit. Here are some tips to help you develop your own strategy.
When choosing or developing a long-term Forex strategy, four factors must be taken into account:
1. Interest rates;
You can't ignore an indicator such as interest rates if you want to use a long-term strategy. If you hold a currency for more than one day, you'll notice an effect called rollover. Depending on which currency you trade and the direction in which you trade, you can either pay a small percentage or earn it. Basically, if a country pays a good interest, then global traders buy currency to counterbalance the weaker currencies to create a trend.
2. Fundamental analysis factors;
These factors can be: the unemployment rate, interest rates, consumer price index, as well as the political situation.
3. Factors of technical analysis of currency market data;
Technical analysis in a long-term strategy will help to develop a time frame, as well as avoid trading at adverse times. Its use will significantly reduce trading risks.
4. Weekly charts.
In a long-term game on the market the use of weekly charts will help to correctly predict currency fluctuations on daily charts. By using the base in the form of weekly charts, the trader's decisions will be clearer and more reasonable, and it'll also be a good support for trading the currency you hold.

If you have made a profit from your earlier trade and you want to increase your risk percent in a way that even if you lose, it wouldn't affect your original fund then I say you go for it.

finally someone says something smart

If you don't have a trading strategy, you can calculate the optimal risk percentage for a trade only by eye. Trading without a strategy, without a certain plan, so-called intuitive trading, is based on naive confidence of a trader in his own genius and infallibility. How many times have I heard: this paper will surely grow (or fall), and when asked why, a mysterious expression and the answer: but you will see. In other words, if you have no arguments except your intuition, it is better to refrain from buying or selling paper. To determine whether you have a trading strategy, honestly answer the following two questions:
1.What is the share of profitable trades for your strategy?
2.What is the ratio of average profit to average loss?
In order to answer these questions, you should at least keep a transaction log, so that the answers are confirmed by the history of real trades.
In any case, the main thing is to have a winning strategy, a strategy whose mathematical expectation of profit will be positive. If you don't have such a strategy, then no money management will save you from an imminent loss of your deposit.
So work on your strategy for now, and then determine the optimal risk amount depending on the strategy.

That's really very important information for new traders like us.

A lot of useful information for newbies can be found in forex forums and especially ForexFactory.

1% ONLY !! never more risk

Hi

In my opinion 1% is pretty enough if you are pyramiding your gains. So the 1% could be much higher if you do it well.

Yeah! Nicely explained Sir.

I think some people risk up to 2% without many problems, but I wouldn't recommend more.

There are 2 questions for your trading
RR = Risk of Ruin
DD = Draw down

What is your maximum loosing streak?
How many loosing trades can you handle?

If you risk 1% each trade and you loose 10-times in a row you lost 10% of your account. That is acceptable for my opinion.

If you risk 2% each trade and you loose 10-times in a row, you loose 20% of your account. This may be still manageable but its a much bigger hole in your account.

If you risk 5% each trade and you loose 10-times in a row, you loose 40-50% of your account. This absolutely not acceptable.

A loosing streak of 10 times in a row is absolutely possible in trading.

Risk is a common factor in the forex market. If you want to become successful, you have to make a plan to deal with the risks.