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How much do you risk per trade? 95 replies

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How Much Do You Risk Per Trade?

Quoting kelly
Hello everyone! I copied this thread from another forum cause I think is very interesting to discuss. a) Less than 1% b) 1% c) 2% d) 3%-5% e) 5%-10% f) more than 10% g) I am still demo trading I myself risk no more than 10%: enough to make a decent profit but not that much that will leave me naked. Regards!!!
Standard Risk per trade should be 2%. this is how most successful traders do & follow.
NarenRaj
Quoting Narenraj
{quote} Standard Risk per trade should be 2%. this is how most successful traders do & follow.
Agreed however that may vary according to our risk management policy, we should take that amount of risk which we can afford to loose.
0.5-2% is normal for successful traders. That may sounds small but you can still make good profits over time if you compound your winnings
Depends on the account size
Standard 2-3%
Aggressive 10%+
good ol 2% is the best
Quoting ericnyamu
good ol 2% is the best
I agree, that's the best approach. In certain situation one can use up to 10% of their account, but I don't think these opportunities occur more than a few times a year.

  1. only risk <2% (preferrably much less) of the account.
  2. NEVER allow a drawdown over (let's say) -30%.. preferrably -20% or less

That's the mantra of all 'proper' traders.

No one ever explained one thing to me:

IF I'm supposed to never allow a DD of > 30% ...then... the remaining 70% are UNTOUCHABLE, right?

Then what the hell are the 70% doing, ever...?

I prefer to put just a small part (10-20%) of my risk capital into the trading account, and trade bigger size (5-10% risk per trade).

Yeah I know the math behind recovering losses. 50% lost means 100% needed to recover. 90% loss means 1000% needed to recover!

I have tried to trade a bigger account with tiny risk, but it didn't work too well for me.. I'm doing much better if under some extent of pressure.. in about every aspect of life.. but that's just me, others will function quite the contrary, everyone must find out what works best for them!

MarginTrader All Time Return: -2.4%
one day's pay
"If The Fool persists in his Folly he will become wise." - William Blake
0.25% per trade normally 3 to 4 trades per day No open trades overnight. Max risk 1% daily Present capital £15k
Quoting asiat
In general, the risk is not more than 5% per trade. (It depends on Sl) But if I'm in at 100%, the price will go my way the risk is increased in three and above. In general, getting a good profit.
In my experience 5% might even be a bit too much. One has to see a very good signal and be very sure about it to risk that much.
My mentor taught me - maximum 5% sum of all positions.
If you're risking 1.6% on a AUDUSD, and have 1.2% on a EURJPY, and you just opened a GBPNZD risking 2.1%...
- that's it, you can't put on anymore risk till one of those trades closes.
if you don't do your maths, the maths will do you.
Quoting mlawson71
{quote} In my experience 5% might even be a bit too much. One has to see a very good signal and be very sure about it to risk that much.
That's usually when it goes wrong

BubaYaga certainly has a point in saying look at your total risk and not so much on an individual trade but in general I think those static universal rules are not necessarily the best approach. If you're short term your risk of getting caught by a big gap is usually well manageable and you can trade accordingly. I like to double winning positions under certain conditions, I like to add trades if still running trades are in profit and so on - the SL is moved a good bit into the profit zone by then. Of course theoretically I can get hit by some gap leaving serious damage to my account but how likely is that and is your account really the problem? Considering short term and staying out on critical conditions and so on. So for me the question isn't really risk of a trade or all of your positions as a whole but rather: do you have a worst case fall back? Can you start from scratch without ruining your life? Can you end up in debt? All these questions need answers to create a unique, tailor made risk strategy.

Or in other words: What happens when you blow your account? Will it blow your life or can you simply fund a new one (perhaps after registering a new company)? Risking 5% of your life is certainly dump but so even 1% would be.
Quoting JensG
Risking 5% of your life is certainly dump but so even 1% would be.
People that risk that much % is usually low capital people (<$1000 account).

If I had $100K on my trading account I wouldn't risk 1%, I would be fine risking %0.10-0.30. Risk is relative.
Staying in the forex successfully is not about winning aggressively. You still have to manage to protect your capital; this calls for risk management. It is not advisable to risk above 5% of your capital for a trade.
Quoting Tarfest
Staying in the forex successfully is not about winning aggressively. You still have to manage to protect your capital; this calls for risk management. It is not advisable to risk above 5% of your capital for a trade.
yes in running forex trading should be able to know how to manage the risks well, because it's one way to survive in running forex trading, and we are sure to continue to work on optimizing the ability of a well to be consistent profits can be obtained
Quoting Tarfest
Staying in the forex successfully is not about winning aggressively. You still have to manage to protect your capital; this calls for risk management. It is not advisable to risk above 5% of your capital for a trade.
I agree. Forex trading is a marathon, not a sprint. Of course, some people manage to be exceptions to that rule, but it’s still not advisable to take that kind of risks.
I risk no more than 10/15 % per trade
Usually around 1-2%, when account is smaller I can go with 5%
Quoting kelly
Hello everyone! I copied this thread from another forum cause I think is very interesting to discuss. a) Less than 1% b) 1% c) 2% d) 3%-5% e) 5%-10% f) more than 10% g) I am still demo trading I myself risk no more than 10%: enough to make a decent profit but not that much that will leave me naked. Regards!!!
When I find myself disciplined enough, I risk no more than 2-percent of my trading capital. When I am scalping no the five minute chart, I put a trailing-stop on my positions. When I lose 2-percent of my trading capital, I stop trading for the rest of the week. I lose 6-percent of my capital, i stop trading for the rest of the month. On those times that I have to stop trading, I do not even trade a demo account. I do have my charts open just to see what's happening in the market.
Quoting camaleonte
I risk no more than 10/15 % per trade
6 loosers in a row .. and you done
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