Are You Taking the Right Risks in Trading? Best RISK Per Trade
https://www.tradingview.com/x/smxiZY2V/
What portion of your equity should you risk for your trading positions?
In the today's article, I will reveal the types of risks related to your position sizing.
Quick note: your risk per trade will be defined by the distance from your entry point to stop loss in pips and the lot size.
🟢Risking 1-2% of your trading account per trade will be considered a low risk.
With such a risk, one can expect low returns but a high level of safety of the total equity.
Such a risk is optimal for conservative and newbie traders.
With limited account drawdowns, one will remain psychologically stable during the negative trading periods.
🟡2-5% risk per trade is a medium risk.
With such a risk, one can expect medium returns but a moderate level of safety of the total equity.
Such a risk is suitable for experienced traders who are able to take losses and psychologically resilient to big drawdowns and losing streaks.
🔴5%+ risk per trade is a high risk.
With such a risk, one can expect high returns but a low level of safety of the total equity.
Such a risk is appropriate for rare, "5-star" trading opportunities where all stars align and one is extremely confident in the positive outcome.
That winner alone can bring substantial profits, while just 2 losing trades in a row will burn 10% of the entire capital.
🛑15%+ risk per trade is considered to be a stupid risk.
With such a risk, one can blow the entire trading account with 4-5 trades losing streak.
Taking into consideration the fact that 100% trading setups does not exist, such a risk is too high to be taken.
The problem is that most of the traders does not measure the % risk per trade and use the fixed lot. Never make such a mistake and plan your risks according to the scale that I shared with you.
❤️Please, support my work with like, thank you!❤️
What portion of your equity should you risk for your trading positions?
In the today's article, I will reveal the types of risks related to your position sizing.
Quick note: your risk per trade will be defined by the distance from your entry point to stop loss in pips and the lot size.
🟢Risking 1-2% of your trading account per trade will be considered a low risk.
With such a risk, one can expect low returns but a high level of safety of the total equity.
Such a risk is optimal for conservative and newbie traders.
With limited account drawdowns, one will remain psychologically stable during the negative trading periods.
🟡2-5% risk per trade is a medium risk.
With such a risk, one can expect medium returns but a moderate level of safety of the total equity.
Such a risk is suitable for experienced traders who are able to take losses and psychologically resilient to big drawdowns and losing streaks.
🔴5%+ risk per trade is a high risk.
With such a risk, one can expect high returns but a low level of safety of the total equity.
Such a risk is appropriate for rare, "5-star" trading opportunities where all stars align and one is extremely confident in the positive outcome.
That winner alone can bring substantial profits, while just 2 losing trades in a row will burn 10% of the entire capital.
🛑15%+ risk per trade is considered to be a stupid risk.
With such a risk, one can blow the entire trading account with 4-5 trades losing streak.
Taking into consideration the fact that 100% trading setups does not exist, such a risk is too high to be taken.
The problem is that most of the traders does not measure the % risk per trade and use the fixed lot. Never make such a mistake and plan your risks according to the scale that I shared with you.
❤️Please, support my work with like, thank you!❤️
✅Join My Telegram Channel: t.me/VasilyTrading
❗️YouTube Channel youtube.com/c/VasilyTrader
💰Instagram: instagram.com/VasilyTrader/ 💰
✅Facebook: facebook.com/VasilyTrading/ ✅
❗️YouTube Channel youtube.com/c/VasilyTrader
💰Instagram: instagram.com/VasilyTrader/ 💰
✅Facebook: facebook.com/VasilyTrading/ ✅
Powiązane publikacje
Wyłączenie odpowiedzialności
Informacje i publikacje przygotowane przez TradingView lub jego użytkowników, prezentowane na tej stronie, nie stanowią rekomendacji ani porad handlowych, inwestycyjnych i finansowych i nie powinny być w ten sposób traktowane ani wykorzystywane. Więcej informacji na ten temat znajdziesz w naszym Regulaminie.