Never Risk More Than 2% Per Trade

[sininfinity]

Good point; I know many blind traders who left the market already because of their overconfidence on their trading systems.

Yeah. It is ok to admit your weakness. There is no shame in it. Every trader out there has their own flaws. It has been said many times that emotions are our enemy when it comes to trading.

 

[Tom Latham]

Yeah. It is ok to admit your weakness. There is no shame in it. Every trader out there has their own flaws. It has been said many times that emotions are our enemy when it comes to trading.

Yes, we are not perfect but the point is, we can improve our self by learning & practice.

 

[sininfinity]

If we trade continuously and don't stay ignorant then improvement happens. We may not realize it but it does.

 

[Tom Latham]

If we trade continuously and don't stay ignorant then improvement happens. We may not realize it but it does.

Yes mate, learning is a continuous process; there is no ending point of learning; so our job is keep studying & updating our trading skill.

 

[MarvelPole]

I strongly agree with you in this regard as I always advise the newbies to spend only 2-3% of their capital amount in a single trade. But, you can invest more if you find an open opportunity like Brexit, elections, etc. So, always stay updated as well. Thanks!

 

[LorrainMor]

Earning profit at a fixed rate all the time can’t be possible always since forex is an uncertain market place and a trader will not always face the same situations in the market. Try to get 2% risks always won’t be possible all the time and this point of view. But, yes, I truly believe that risks should be lower as possible so that the trader can trade without any significant fear of huge capital loss.

 

[sininfinity]

Yes mate, learning is a continuous process; there is no ending point of learning; so our job is keep studying & updating our trading skill.

Well I don't disagree but differ a bit from your opinion.

My aim is to make profit and not keep improving all the time. Sometimes it is necessary to hold yourself back a bit for the greater good.

 

[trauton]

It is the best post I have seen on this forum as it is really helpful for the new traders. I strongly agree with you that we need to risk only 1.5 to 2 percent of the capital amount on a trader. It is the best money management tip as well. Do you agree with us guys?

 

[Tom Latham]

Of course mate, I do agree with you! Really more than 2% risk ratio is much costly! Because, consistent 3-4 SL is very common scenario here.

 

[Svetlana Loboda]

Of course mate, I do agree with you! Really more than 2% risk ratio is much costly! Because, consistent 3-4 SL is very common scenario here.

I think so, even now I am working with 1% risk reward ratio! 2% is the maximum number to me.

 

[Mark Dahl]

If you take too much risk, it will hurt you so much when you have bad luck.

 

[Eduardo Lucchese]

Taking risks is mandatory for traders. But taking too many risks can be dangerous.

 

[Gito Dinev]

You need to match your risk to the win rate and risk/reward of your system and your tolerance for drawdown.

 

[Alexander Hudson]

Without taking risks, no trader can become successful in this market. but they should be very careful about taking risks.

 

[FXOpen Trader]

Without taking risks, no trader can become successful in this market. but they should be very careful about taking risks.

If the risks that are actually present in doing our trades will come down we can become better traders.

 

[skihav]

Without taking risks, no trader can become successful in this market. but they should be very careful about taking risks.

I completely agree. In a market like forex, the more your risk, the more profits you make. However, that doesn’t mean to risk without any calculations. A trader should risk a very small percentage per trade. Allotting proper risk and reward ratios is a good way to minimise risk and approach the market practially.

 

[Oscar Shumack]

You have to take risks. But never take too much risks.

 

[FXOpen Trader]

I completely agree. In a market like forex, the more your risk, the more profits you make. However, that doesn’t mean to risk without any calculations. A trader should risk a very small percentage per trade. Allotting proper risk and reward ratios is a good way to minimise risk and approach the market practially.

Forex trading is a type of business that needs Full planning and control to be able to get the required profits from doing our trades into the markets.

 

[Hoosegow]

One can’t trade without taking risks. I believe using stop loss at a proper position is the best way to reduce the risks.

 

[omegastuff]

Risk to reward should always be 1-2%