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How Much Do You Risk Per Trade?

  • #241
  • Nov 28, 2016 6:42am Nov 28, 2016 6:42am
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
  • #242
  • Nov 28, 2016 7:10am Nov 28, 2016 7:10am
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.
  • #243
  • Dec 9, 2016 10:14am Dec 9, 2016 10:14am
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
  • #244
  • Dec 9, 2016 10:51am Dec 9, 2016 10:51am
Depends on the account size
Standard 2-3%
Aggressive 10%+
  • #245
  • Dec 10, 2016 3:04am Dec 10, 2016 3:04am
good ol 2% is the best
  • #246
  • Dec 10, 2016 6:52am Dec 10, 2016 6:52am
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.
  • #247
  • Dec 10, 2016 6:50pm Dec 10, 2016 6:50pm

  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: na
  • #248
  • Dec 10, 2016 11:42pm Dec 10, 2016 11:42pm
one day's pay
"If The Fool persists in his Folly he will become wise." - William Blake
  • #249
  • Dec 11, 2016 1:21pm Dec 11, 2016 1:21pm
0.25% per trade normally 3 to 4 trades per day No open trades overnight. Max risk 1% daily Present capital £15k
  • #250
  • Dec 13, 2016 6:21am Dec 13, 2016 6:21am
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.
  • #251
  • Dec 13, 2016 6:31am Dec 13, 2016 6:31am
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.
  • #252
  • Dec 13, 2016 7:32am Dec 13, 2016 7:32am
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.
  • #253
  • Dec 13, 2016 9:08pm Dec 13, 2016 9:08pm
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.
  • #254
  • Dec 13, 2016 9:56pm Dec 13, 2016 9:56pm
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.
  • #255
  • Dec 14, 2016 1:29am Dec 14, 2016 1:29am
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
  • #256
  • Dec 14, 2016 6:08am Dec 14, 2016 6:08am
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.
  • #257
  • Dec 14, 2016 1:45pm Dec 14, 2016 1:45pm
I risk no more than 10/15 % per trade
  • #258
  • Dec 14, 2016 2:32pm Dec 14, 2016 2:32pm
Usually around 1-2%, when account is smaller I can go with 5%
  • #259
  • Dec 14, 2016 10:45pm Dec 14, 2016 10:45pm
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.
  • #260
  • Dec 14, 2016 11:32pm Dec 14, 2016 11:32pm
Quoting camaleonte
I risk no more than 10/15 % per trade
6 loosers in a row .. and you done
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