How much do you risk per trade? Do you risk the same for all trades or does it vary depending on some factors such as your level of confidence in your trade, etc.?
Varies - usually about 3% but I trade EoD and trade frequency isn’t so high
But I tend to half that if the signal was generated on Friday close to be executed Monday - I’ve found Monday trades suck big time
Really depends on the trade and your risk tolerance, for me I will only have 2 trades running at risk at any one time with 2% each giving a max risk of 4% at any one time but I am an aggressive trader
I always use 2% as the max. Sometimes its actually hard but I also use 2% as the min. - its a good test of your confidence in your system - if you feel queasy putting in all of the usual 2%, then maybe the set-up rules aren’t quite action-ready?
Also, when in a really strong trend (rare in forex, more likely in a stock index such as the Dow), I look to pyramid the initial trade with another 2% position once the initial one has reached 2% profit. Then aother pyramid once the second trade has reached +2% etc.
which risk is more appropriate it depends on your trading approach , i think 2-5% risk ratio is comfortable to avoid unfortunate risk and losses.
the risk ratio you have explained is not clear , it depends on your trading strategies, different strategies contain different risk ratio.
My position sizes are usually 1% of my account with a max SL of 3%. If the pair is going in my direction I will scale in multiple positions, but only when I feel it is safe to move the SL on my previous positions to break even. This way I’m only ever risking 3% per currency pair. If the original trade does not go my way then there’s plenty of room between the buy price and SL to just wait it out because it’s a relatively small position size.
What’s the maximum you’ve risked in a trade?
Thanks @Lang15. You never increase even if you feel the trade is really going your way?
I risk anywhere from 1.5 - 3.5% at any given time on a trade.
In monetary terms or as a %?
I’ve actually risked 10% on a trade - that’s not adviceable though.
I am comfortable risking about 3% but I don’t trade every day - also I run winners until I’m stopped out.
And I can often get my protective stop loss to 0.5r or less within one day.
It happens but rarely do I ever take a 1r loss.
With that said I took 2 1r losses this week - lol
No I always stick to the plan and keep my positions at size not to cause stress
A strict 2%
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