Never risk more than 2% per trade - definition please

Beginner Questions
1

My guess, never have more that 2% of your capital at risk “in” the market at one time.

Otherwise my math tells me - 2% per trade - If I generally open 3 trades (my per trade) having a T.P. point at short gain, then medium gain, then go for it gain. (to me this is 1 trade) so All three open positions = 2% of capital.

BUT continuing the math tells me that’s one trade , I can go ahead and open another set and another set on different pairs - -OHH - now I have 6% risk.

Is this correct thinking - - (one should NOT open 3 sets and risk 6%) or is this common practice, cause I didn’t risk more than 2% per trade.

some places I see someone asking (I want 30% return per year) or some other says - I make 4% per week 4% per week? is that 208% per year - double your money then double it again?

AND - now - what I kinda don’t get - If I risk 2% - I want to know that I am risking this in anticipation of making money - not breaking even -so I want potential to make 4% - now keep in mind this is a open and close all positions in 1 day operation daytrader -

4% per day holy shhooottt (where am I wrong - whats the fuzzy part of the math)

2

first off I love your name lol!!!

There are different views on this. In the heart of it it is a risk management view that many share

[B]Thou shalt not risk more than 2%[/B]

People look at this differently. Those looking to be aggressive will say 2% per trade.

More conservative people would say no more than 1% per trade or a total of 2% total at any given time.

Then there is the question of risk to reward ratio.

Many say never less than 1:1 ratio some swear by 2:1 or greater. Fapturbo says somewhere in the neighborhood of 1:50 (risking 50 to earn 1)

At the end of the day you have to decide what is right for you. Remeber this though you will want to live to fight another day.

Nobody wins them all nobody!!!

The sooner you can realize that and make it a true working belief in your trading the better off you will be.

Be willing to close a bad trade, be willing to say I am wrong. Be willing to cut your losses short and let your profits run.

When you can close a bad trade as effortless as a winning trade then you will be well on your way.

sorry for the rant

3

Like you said no more than 2% of your trading account per trade.

The idea is that if you only risk a small amount on the trade you should live long enough in the game to learn and get confident in what you are doing.

Just like Johnny said you have to be comfortable with the amount that you risk.

If you are just starting out breaking even is an achievement in itself. Alot of poeple lose alot of money rushing into things head first. I am one.

If you are breaking even in the begining and stick with it you will improve and start to make money. Just keep learning and tweaking your system.