What percentage of your account do you risk per trade

Beginner Questions
21

i read in school of pipsology about risk and stuff, but i got confused tbh.

it is definetely wourth Reading though!!!

but this is how i do or will probably do: use 10% margin and risk 0.5-1%

for example if i have 1000, i buy or sell for 100 and use a stop loss so i dont lose more than 0.5 or 1 dollar.
is this good?

22

Risk percent should be as per trading capital. I will risk only 3% per trade if my account is $100. If my account capital is $1000 then I will increase my risk to 1% per trade

23

It is good methods in riskig of capital , i also think if risk percentage below of 5% will impact of survival account in long term , so its will make trade being relax and comfort

24

I think if you’re risking only 1% in each transaction with $1000 is not increasing the risk but it is lowering the risk although the amount of dollar which you risk is improving. Could you share what is your consideration to risk 3% in each transaction with $100 and why do you use 1% of equity when you had $1000?

In general, trader shouldn’t risk more than 10% of equity in each transaction except if he has known the risk and he is ready to face it. As I know, retail trader will risk about 1-5% in each transaction so it will be safer to trade in any different condition of market.

25

First, I take 2.5% of my account and find that dollar amount (For a $1000 account = $25 at risk per trade)
Then I will use $25 as my risk for all trades. This helps unlock the true potential of the Reward:Risk ratio.
Once my account grows a significant amount, then I will re-evaluate 2.5%.

By using a fixed dollar amount, I might be exposing myself to a larger drawdown, but my recovery will be much quicker.

26

I risk around 10% of funds per month.

27

Open a demo account and see how long you will last when risking 10% per trade.

28

I personally recommend 1-2% risk per trade for newbie traders, until they are able to achieve consistency and positive expectancy.

29

And what do you think is consistency , I mean when one should increase percent of risk per trade. Is there any number of pips per month that are in profit for what time period, then we can say it is consistent performance?