Do you have the proper rules in place to protect your capital? Many are focused on how much they make, but not on how much they keep. So how do you manage your forex capital?
2% of your total capital in one trade or possibly even less. Even If trades do not go my way I still want to trade and risk really small capital unless I know for certain that the market is going in a particular direction, then a little more ( for example USD/JPY) …
I agree. I personally use 1% of my capital on one trade. I don’t even open a trade without a stop loss order with it. BabyPips has a cool tool (Position Size Calculator under tools) to help determine position size based on percentage of account at risk and stop loss.
Never risk more than 3% of my capital any trading day. This is the key to to keep funds available for next trading day.