I have a $100 account. I risk $2 per trade. I feel like risking $2 is too small because when i predict the right direction, the market might fake out but eventually go in the predicted direction.
For me that fake out will have already hit my SL
ANY THOUGHTS ON WHAT I CAN CHANGE TO IMPROVE MY TRADES🙏
You havent given much information.
No strategy, no setup, no backtesting results, no statistics, no currency pairs, no SL range, no TP range, no examples, etc etc.
Therefore, the answer for you is double you SL distance. If you’re risking 2% with a stop loss at 20 pips. From now on risk 2% with a 40 pip stop loss. Do that for 20 to 30 trades then review your trades and statistics. Journal your trades please.
Sounds like what you are trying to say is that your account size is so small that even when trading the smallest lot sizes, if capping your risk at $2 per trade your stop loss is still way too close to your entry price is that correct?
If so, then yes this can be an issue and your only solution may be to either increase your account size or try different currency pairs that may be less ‘$/pip in your account currency’.
To trade properly you really need to have the account size to be able to have your stop loss at a good technical level or whatever your strategy determines FIRST, THAN you adjust your lot size to ensure it fits within your maximum $ or % risk limits.
Stop thinking in terms of dollars and start thinking in percentages.
Do you believe $2 profit per trade make you rich? No.
But 2% profit per trade will. As long as you have a lower average loss and the most slightly positive win rate. 6% profit a month will double your account in a year. Try getting that a job that doubles your salary every year.
You did not give the information of Risk reward ratio. Trader should always use minimum 1:1 risk reward ratio. You are taking 2$ risk per trade. So, you must set your TP at least for $2.
One stop loss nothing will tell you about strategy and if you looking for strategy profitable without stop loss activation, I wish you good luck in searching Regards Greg :