Never Risk More Than 2% Per Trade

[FXOpen Trader]

It is most important for a trader to minimize their risk, so in trading try to keep your risk minimal. Risk anything between 1-5% of your trading capital. It is the best strategy for money and risk management.

We will need to learn how to minimize the risks that are present in doing our trades into the markets.

 

[Ferro Bianchi]

That has been working as a golden rule for decades. No matter how obvious the market movements seem to be, you must never risk more than your risk appetite.

 

[Gargoyle]

That has been working as a golden rule for decades. No matter how obvious the market movements seem to be, you must never risk more than your risk appetite.

You are right! The 2% rule is a risk management technique that does not allow you to risk more than 2% of the trading capital. Control and manage risk efficiently.

 

[Pinchbeck]

While many traders believe that it is the golden rule of forex trading to never risk more than 2% per trade. I believe that every trader must find his own limit. What works for me might not work for you. So, you better create your boundaries after you have already tested all that you could have.

 

[Flotsamm]

The 2% rule is one of the most efficient risk management techniques. There are other techniques too which are used by traders. I prefer calculating my risk reward ratios and use 1:2 R/R ratio. Risk management techniques are what differentiate successful traders from other traders.

 

[Bahiya Shinam]

One thing to be taken into account whenever you trade is how much money you gonna risk in your trades. But whatever it is dont ever risk more than 2% per trade. This is the most common mistake to trade more than that and losing all your money. That is why you have to set 2% stop loss rule to avoid such a fate to never suffer a large loss.

Losing only 2% per trade means that you would have to maintain 10 consecutive losing trades in a row to lose 20% of your account. Even if you sustained 20 consecutive losses that you want to overtrade the total drawdown would still leave you with 60% of your capital intact.
So one thing to withstand the harsh market conditions is to learn how to control your losses. And that is how important to know the rule of 2% stop loss.

To be very honest, Forex traders need a sound and a stable mind and it should not be risk-taking. Maximum traders don’t belong to this sound mind as a result surviving in Forex has become difficult for them. Experience always helps traders in removing all the bad practices from their mind.

 

[FXOpen Trader]

To be very honest, Forex traders need a sound and a stable mind and it should not be risk-taking. Maximum traders don’t belong to this sound mind as a result surviving in Forex has become difficult for them. Experience always helps traders in removing all the bad practices from their mind.

We must try to bring down the risks present in doing our trades into the markets.

 

[Drizzle]

Honestly, risk management is underestimated and underrated in the forex trading community. And this mindset is the reason for many losing. You must know the risk and know how to handle it.

 

[Gallimaufry]

I think that’s really important to keep in mind. Traders need to understand that it’s not always how much they trade, but also how much they save. The goal is to make consistent income and not a single profit once and for all.

 

[Suzzaine89]

No doubt that the one of the most effective risk management approaches is using the 2% rule. Even, I have to keep my calculation for risk-reward ratios to 1:2.

 

[adamartin]

I agree. You should never risk more than 2% in forex trading but most people risk way more than that.

I'm not sure why people risk so much more. I think it's partly because they don't realise how much they're risking, it's also partly because they want to make as much money as possible and they're greedy, and partly because they don't understand how risky it is.

 

[The trader]

generally the beginners trade over and over above all when making a losses , they try to overcome the losses by overtrading but at the end of the day they become loser.

 

[Triphibious]

As you begin your journey in Fx, realise that risk is inevitable and sooner than later, you will lose more than you gain. The trick is to maintain balance between receiving rewards and losses. Do not start investing with a huge amount. The market situation is uncertain and constantly changing. Be aware and make wise decisions that take you down a path towards success and consistency.

 

[Mojo]

Risk management is very important while trading forex and you should risk the amount you can afford to lose. If you want to earn small profits then 2% per trade is okay but it won’t help you to earn big profits. For higher profits you need to risk more than 2%. Taking too much risk means you’re more exposed to losses so be careful.

 

[Evagation]

It is up to the trader how much he wishes to use per trade. The 2% rule is good for beginners but when you have gained some experience in the market, you will know what you should do to reap maximum benefits.

 

[Colossus]

There is no hard and fast rule for what you must risk per trade. It depends on how much you are ready to lose if your trades go in the opposite direction. But yes, I do believe in the fact that you must keep your risks small until you have gained enough experience in the market and can make good trading decisions for yourself.

 

[LouBega88]

Forex traders tame passion for trading in their minds but this passion sinks into oblivion when they can’t gain profit. Traders fear to trade in this market due to its ferocity. After selecting a broker, starting trading is not everything rather a trader should keep earning more and more knowledge. Your selected broker must be well-regulated.

 

[Adolpho Sandoval]

In forex trading, never take on too much risk. Only take a risk if you are certain that you will not lose. You might get lucky once or twice, but you can't expect to be lucky every day. So be careful and never take unnecessary risks or you may lose your hard earned money.

 

[Mecine]

As a general rule, limiting your risk to 2 per cent per trade is advised by many traders. But the chances are that 2 per cent might be a little high, especially for those who are beginners. It is pretty low, but it depends from trader to trader.

 

[Pedological]

You have a lot of time to make money after you have developed an understanding of the market. A small risk would be enough for that. 2% of your available trading capital is surely a good starting percentage. With time when your risk appetite grows, you can increase the risks you take per trade.