Never Risk More Than 2% Per Trade

[Paralipsis]

2% per trade is a standard percentage used. There are traders who even use 3%-4%. But this should be decided according to the skills a trader possess.

 

[Prelect]

Not every trader is comfortable taking a certain amount of risk. Some may find 2% of their trading capital low while others may be reluctant at risking even this much. So, it is completely fine if you have something else in mind and don’t want to stick to this rule.

 

[Polymania]

As your money will always be at risk anyway, it’s better to keep the risks small until you have gained some experience and can handle bigger losses. You don’t have to follow a herd mentality just because everyone else around you is doing well. You must stick to your budget and ensure that your losses don’t go beyond your affordability.

 

[FXOpen Trader]

As your money will always be at risk anyway, it’s better to keep the risks small until you have gained some experience and can handle bigger losses. You don’t have to follow a herd mentality just because everyone else around you is doing well. You must stick to your budget and ensure that your losses don’t go beyond your affordability.

We will need to learn how we can control the losses we are getting from our trading accounts.

 

[Akira Rush]

As a beginner, it is best if you keep your capital safe. Hence, risking 2% per trade is okay because it gives you time to understand what moves you should make next and how to lower losses. Applying risk management strategies to your trades is necessary if you want to survive in the market for a longer period of time.

 

[Moilsome]

Consistent profit is required to inspire confidence in the trader. You should also trade with risk management if you want to make a consistent profit. Controlling emotions allows them to be traded.

 

[FXOpen Trader]

Consistent profit is required to inspire confidence in the trader. You should also trade with risk management if you want to make a consistent profit. Controlling emotions allows them to be traded.

We will need to make consistent income from doing our trades into the markets.

 

[Crescendo]

There are a few reasons for this -
1. By limiting your risk you ensure that one bad trade will not completely decimate your portfolio.

2. By only risking 2% you give yourself room to make mistakes. Everyone makes losing trades from time to time, but if you only risk 2% per trade then those losses will be manageable.

So, if you want to protect your investment portfolio then never risk more than 2% per trade. This may seem like a small amount, but over time it can make a big difference.

 

[Vermicious]

I believe that the risk should be in accordance with the trader’s appetite. No need to go beyond what you can’t afford. If 2% seems like a big amount, you can keep it small and if you think that you can handle a bigger risk, you can do that with a proper risk management strategy.

 

[Somerze]

The risk you take in the market should be in accordance with what you can afford to lose. It can be 2% or 20%. Just see what works for you!

 

[Rapacious]

I don’t think it is a matter of how much you are risking per trade but how much you are saving per trade. Keep a long trading career in mind and you won’t risk anything beyond your affordability.