DislikedNo offense taken.
I posted this over a heated argument whereas a few people were claiming that 1-2% risk per trade was a silly idea. They were insisting that 10-20% was much more realistic if you want to grow an account. The purpose was to show how massive 5% a month (Not day, not week) really is...
QueIgnored
I remember Joel posting a "ruin rate" chart according to each risk %.
Now it becomes simple math of how much you are willing to risk vs gain. At some stage, a drawdaown of at least 5 trades in a row can happen. That will burn out 50% of their accounts.
I think 2% is the max for me, if not too much (2% is pretty much aggressive).
What I meant earlier - there are some that pay too much attention to the numbers at the spreadsheet, and become dizzy. For me, I just know that compounding has a great effect for the long term, that's all I need.
Ben