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Question on risking 1%

  • #21
  • Oct 9, 2020 6:30am Oct 9, 2020 6:30am
If the 1% danger management is a great number. But the important thing is, how long will you keep that style
  • #22
  • Oct 11, 2020 1:43pm Oct 11, 2020 1:43pm
If you want to become successful in this market, you need to make a plan to minimize the risks. Otherwise, you can not survive in this market.
  • #23
  • Oct 12, 2020 12:13am Oct 12, 2020 12:13am
Quoting chuasai
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.

Risk per trade is better than risk per month, imo. The second option "lacks strictness", knowing you are allowed to lose no more than 1% in a month you may do that in a single trade trading NFP with bonus and high leverage or do it gradually . This flexibility is detrimental. I think you need to make sure you have highest level of control over your trading and emotions.
  • #24
  • Last Post: Oct 27, 2020 11:23am Oct 27, 2020 11:23am
Quoting chuasai
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.
If you are a rookie, capital preservation should be your goal.
It's not unlikely that you'll get 10 losing trades in a row, and you'd be down 10%.

What you could do is go down to 0.5%, then 0.25%, once you have 2 losses in a row.
This should greatly minimize you drawdowns should you get into a losing streak.
And this would be a percentage of the remaining balance, not initial balance.

Once you are consistently profitable with a decent win ratio and risk-reward, there are many ways to grow an account.
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