What often they do!

HELLO .I just want to know how often most traders risk their money in one trade !
is it between (1-5) % and what the worst thing maybe they do !?
Thank you!

I am trying to keep my maximum capital risk to 1%. Occasionally, if I have a good unrealised profit from several open trades on a trending market and am adding more, I will increase this to 2, 3, 4 or even 5% - but never on the first trade.

At 1% risk, I can lose lots of times before being forced to re-capitalise my account.

2 Likes

thank you sir for replying ! so they often risk between 1-5% ! and i think they put their stops up and down Support & Resistance so mostly when the price goes in way they dont want with 5 % they often out ! and when they out we get in with who are still in the war to win with them! thank you now i can see

I would say about 1% myself. I’m still practicing on a demo account, but risk management probably has to be one of the most important aspects of forex trading. I’m still learning all that I can

1 Like

very good this risk is enough if you are able to turn 1% risk in reward this continuous profi twill make awesome earning calculated after. Then benefit of less risk is you can be out of danger if loose your trade. Increase risk when you are dead sure now you will win the trade. The other way is to walk slowly than of running after big targets. I think 1% risk can be also a challenge to manage because no one want to loose his amount.

1 Like

Yup, member of the 1% risk here as well. I try to keep it as reduced as possible and to not step out of this line. Still checking the demo from time to time to test some new strategies but overall I’m striving to stick to my initial plan for a certain trade. It doesn’t work every time but I guess learning is a never ending process.

1 Like

The professional traders always takes a control on their emotions. Emotions plays a very important role in your trading. For example, if you are angry than you shouldn’t have to do trade because you are out of your mind at that stage. You should have to think well and also you should have to be calm, relax and fresh when you are trading.

The difficult part of Forex trading is to get in and then get out of the market with a reasonable profit consistently. Never risk more than 1% of your account per trade.

1 Like

Another interesting idea is to use only part of your capital on opening positions. This means that even in case of huge unexpected movements you will be able to continue trading.
For example, you can place 60-70% in fixed income securities and risk by other part.

1 Like

I am not getting your point sorry to say. But yes, if you are trying to say that traders are investing all their money in one type of asset, then I must say that portfolio creation, i.e spread investment over a number of assets can minimize your trading risk.

I take a similar view although where you can get “fixed income securities” which are relatively safe at the moment - I’m not sure !

But yes if you want to gamble £100 a trade then 1% would mean you “need” a £10,000 account, just sitting there keeping the broker’s balance sheet looking good - so why not just keep say £2,000 in there to survive a significant drawdown period and buy something to sell on a speculative basis with the rest ?

Go looking for an undervalued asset in the real world to “Flip” ? a Car perhaps which is under-priced - a boat which needs tidying up ? Whatever you know something about !

One lot of “Gambling money” then becomes two or more sets of potential income without detriment to the size of your trades !

Mostly peoples asks about what the successful traders do and how they do. The only thing which I knows about the successful traders is that they don’t waste their time. They know how to manage their time. Their timing of doing trade is too good because of which they become so successful in their life.

1 Like

I like to risk 1/3% to 1/2% in most cases.

Imagine risking 5% of 3 trades, against your favor in hat-trick will end your 15% of the capital you deposited. There is a huge chance that your account will blow up. Keep risk to the minimum & maximum is 1% so that you can enjoy more trades with few affordable losses.

1 Like

Really it is a big risk to take 5% in each trade. How one can use 15% risk . It will be a much dangerous because you are not sure you will get reward from this risk or loose. Keeping your side safe one must use less than 1% risk in trading . Slow trading with positive results is better than loosing big in high risks.

For me, 2% is the maximum; since my success ratio is not much standard yet! On the other hand, I know the market is very uncertain.

Hey, K, very good post, seriously. The less you risk, the better you are in position to safeguard you account. A lot of folks forget, without money you can’t trade.

The Ever Safeguarded VIPER

1 Like

Appreciate it, and glad to see we are on the same page here.

I am trading with my wife and I’s retirement account, so without money not only can I not trade but I cannot retire :smile:

Basically, greedy traders go with such an aggressive risk reward ratio! But, pro traders are decent, they don’t go for more than 2% in a single trade.