what % do you use as your money mgmt 2%? I can understand a larger account but how about a small account
Why would it be different for a small account?
Account balance shouldn’t matter. % is what standardizes your money management. For those with small accounts, it is good to practice getting consistent percentage returns, then move up to bigger account.
Exactly, account balance shouldn’t matter. I’ve traded accounts with various balance and use the same percentages
This is my first post here. I have never traded with a live account however i have been practising with a sim for months and i am now booking nice pip profits. I always consider the sim to be real- this gets you into the right mindset. I believe that 5% is a suitable level and the acc size shouldnt really matter as it is the same % after all!
I have two accounts, my main account, and a $100 account I use to test my EA’s. The $100 account is a standard account the regular lot size makes or loses $10 per pip, obviously this is too high for a $100 account so I trade at 0.01 lots this makes 10 cents per pip.
As I have been working on low time frame scalping EA’s I usually set my EA’s to use a stop loss of 25 pips this is = $2.50 risk.
As everyone is stating, it should always be 2-5% of your account as you want to make sure you can stay in the “game”. As your account grows into a larger sum, most would think to increase the risk percentage but you should actually start decreasing your risk. Don’t get greedy!
5% is too high, every trader will experience a string of loosers in their trading career, so lets say you have 5 in a row, your down 25% sweating yet?
How about closer to 10 in a row … dont think it can happen?
Best to keep risk as low as possible less then 2% ideally.
N