How much should I risk per trade?
- Thread starter darrensammy
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The optimal risk per trade depends heavily on the nature of the trading system you are using. Do you have at least 30-40 trade results of your trading system to do the analysis and calculate the optimal risk size? If not, stick to the 1% risk per trade as a rule of thumb.
Forex is all about taking risk but I’d say it's wise to not to take more than 2% risk. And remember to have a proper risk and money management strategy in place. Earning money through forex is an art but losing lesser money denotes a trader’s smartness, so make sure you imply stop loss where you don't suffer much loss.
Hello, it is considered good practice to have at least 2,0 risk reward ratio . That is the relation ship between the amount of return gained on a trade and the amount of risk undertaken on a trade . a Take Profit of 100 Pips and a S/L of 50 Pips gives you about 2,0 R/R . If you go with above criteria you will only need to be 33,4% correct to be in breakeven in your trades. In the real world the trading edge you will use will require an R/R 2.0 or above to be successful.
-Bella
-Bella
I've always heard that you should risk 1% of your account balance per trade, so basically $1 for every $100 in your account. In cases where you're extremely confident, some say they risk more.
I also think 1% is a good risk percentage to stick to, and even if you are very confident, you should never risk more than 3%.
The risk should reflect the amount of money you can afford to lose in particular trade. It should be known in advance because unexpected losses are hard to manage
