20% over a span of trades isn't too bad, maybe he just needs a strategy refinement but losing 20% in 1 trade is a big mistake that should be corrected first.
i personally take 2% to 3% risk per trade
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Dislikedlosing 20% in 1 trade is a big mistake that should be corrected first.Ignored
DislikedFor daytrading it makes sense. However, you can trade long term without being interested in the actual trading, so long as your interested in making money. One of the great things about trading is you can take a very hands-off approach going weeks or months without looking at your account.Ignored
DislikedBut if you play with leverage 50 from Oanda with 100% capital, we will get margin call easily , how can we relax?Ignored
DislikedIn my opinion 2% per trade is for gamblers unless of course you only maintain one or two trades at a time.
I used to do that sort of stuff.
No more.
2 trades open with a combined drawdown of 5% is crazy in my opinion... if Bank of America goes broke on a Sunday (or something similar), so do you in your account.Ignored
DislikedLiticus, I get the impression you are trying to make a lot of money from this as fast as you can... good luck with that method, I guarantee you will go broke, no problem, no question, absolutely guarantee it!!Ignored
DislikedI trade one pair at a time.
I agree, you risk 2% on one trade and have 5 trades running at the same time, common sense has to kick in a little.Ignored
DislikedThe 2% drawdown limit is often thrown around but I think when it comes to risk management you have to put some time into creating your own rule set. For example if your strategy is to scalp 5-10 pips, 2% is a stupid number. If your strategy is to hold for a few months following broad economic trends, 2% will easily get your stopped out only to see your ideas come to fruition.
I ask two questions when choosing stop levels and position sizes. At what price does the trade become invalid?
How much am I willing to lose per month?
Say for example I...Ignored