How much do you risk per trade?

Oh, they certainly do. But I know where my limits are, and I know what I am good at and what I am not good at. That, of course, varies from trader to trader.

Found out that 1% risk/trade would be somewhat consensus if one has to be careful... On the other hand, you have to torture yourself through many trades in order to double the amount... So again, as always, depends on the WHOLE picture.. not just one single isolated parameter... For example.. if I am looking to DOUBLe the account... getting like 10%/trade.. I might risk at least that... for good opportunity... If I am looking just for "stable" (not such thing in trading btw but still some appear more than others) then I would reduce risk to even like 0.5%/trade... if good AUM... Less than that.. I don't have the will to trade... I am not a marathon trader by definition... I like to COME and GO or sometimes other way around

You've certainly gotten the gist of it!
I wish you success with the actual trading!

Well, I think that's totally fine. Not all are perfect when it comes to news trading and there are also traders, who are bad with the technical part. So, it varies.

I agree. In the end of the day the only thing that matters is to use a strategy that works for you, regardless of what others are doing.

It is recommended not to risk more than 2% of your balance.

But what it all really comes down to is your entry. A well thought out limit order has great potential!

I think it all depends on strategy and the success rate, but from personally I wouldn't risk more than 5% on the trade.

I think even that is a large percentage, especially if one is a newbie.

2% max ,after you understand HTMRW how the market really works.

My account is small so best thing i can do is risk a bit more so around 5-10% per trade is normal.
I don't keep all my trading money with broker, only about 1/3. This is in my opinion the best MM you can do.

i dont know your are a newcomer or not. if yes, i thnk 5 -10% risk is more risk for sometimes , according to me 3% is suitable for you.

I stick to even less than that, most of the time.

Like i said before . I keep only 1/3 of money on broker account so i'm not risking 10% off all money, only around 3% ,
In case of black swan or something max i can loss is 1/3 of my money not all of it.

It's much better than telling myself "I will risk only 3%" We all knew that when emotions are in play it's hard to do thing properly.
When i see that i lost 10% of money that i CAN SEE i feel physical and mental pain and it let's me close my trades much easier.
3% of it is different, it's ONLY 3%...
What is even more important is that i can't buy / sell as much lots as i could with all my money. It's obvious that it lowers my risk factor by a lot. I have to think through what i do before i do it cause i don't have money to go crazy

Depends which RM strategy I am using in the particular trade.

If I use hard SL it's up to 5% of account balance and at least 1R.

If I am working with a hedge it's up to 10% of account balance but as floating loss, not realized.

For me that's too much, but to each their own.

It also depends on the WHOLE picture... If one starts with base deposit, aka X... the I believe he should be much more careful then if he already reached target RETURN... In other words, I believe it is much easier to risk PROFITS than initial deposit.. Also it is different if you look at your OWN deposit, or initial deposit than to watch this more like (mutual) FUND scheme where (interactive, flowing) DrawDown is much more important because new people are entering all the time... and no-one want to lose more than certain pre-agreed amount even if initial investors haven't lost any deposit only maybe some profits... So for illustration, if I start with 10k USD on 01JAN.. and get to 15k... Would maybe risk even few % per trade for a good opportunity... But at the beginning, when I am risking the deposit... would be much more reluctant, so maybe 0.5-1% if good opportunity presents itself... But again, it is down to a WHOLE Picture of trading goals, styles, strategy.. that serve or should serve one purpose... more money/profits in the ENDGAME, right? Sometimes certain parameters are like WTF or even laughable, but if that brings MORE money in the end, then all good in my book, specially if no radical additional risk was taken for a fraction of additional return. Something like that And yes, I tend to FOCUS more on fewer trades per year and not like a lot of them per week or even day... For example, HighFrequency is totally another animal, but for manual... My dream would to take only 20 good trades per year At least in longer-term strategies with like max 100%/year return.. And also, I do not overtrade after the goal is reached...

I think 10% is high especially for new trader. 2-3% is best figure for new trader.

Hi guys, just saw this thread on how much to risk per trade and given this has been top of my mind lately it may be of benefit (I hope!) to share my thoughts.

I believe many factors are at play in your risk per trade:
- What is your winning trade/loosing trade ratio for your strategy? How many times do you win vs loose? In my opinion, I believe a strategy that wins more than it looses warrants more risk per trade. Maybe 3-5% of your portfolio. Given you'll be right more. For me, my strategy has a winning/loosing trade ratio that is less than 50%. Meaning I am wrong more than I am right. In fact, id be willing to say my strategy probably has a ratio of about 10/20%, but when I am right, I am right very, very big. For a strategy like this, probably makes sense to risk less per trade, say 1-2% of your portfolio, and then as the trade goes for you, you pile on the risk. In summary, it depends on your winning/loosing ratio strategy.
- Quality of the trade Setup. This is tough to measure and requires good judgement on the traders end, but if youve been in markets even for a few months trading you know that setups come in varying degress of quality. Sometimes, ill see things shaping up and I look at a trade that is just screaming at me to take a position, like its just blatantly obvious to market is going to move in a direction. These types of setups dont come along often, but if a setup like this occurs, certainly risk more per trade 3-5%. Certainly, we can be wrong, so dont risk too much! On the flip side, sometimes your just unsure of a setup but want to take it anyway, then risk less 1-2%.

There is certainly much more to risk taking then this. But I believe these to be 2 big factors. Happy to hear others thoughts and where you disagree with me. I love constructive criticism!

For reference I have been trading now for about 18 months on and off with the last 6 months being fully immersed. So in this game, I am an absolute newborn! But excited to see where this journey is headed.

Cheers Traders, to our success!

its a very good post with so much information, got so many fine lines , thanks for your nice reply.

we all try to minimize our risk ratio when trading in practical , but honestly speaking maintain same risk ratio is very much difficult for all times.