Risk Management

[Antho]

What percentage of your total capital do you typically risk on a single trade, and why?

 

[siyalikashyap]

Many traders limit their risk per trade to 1-2% of their total capital. This approach aims to protect against significant losses that could wipe out a substantial portion of your account.

 

[Mishra_86]

Many traders limit their risk per trade to 1-2% of their total capital. This approach aims to protect against significant losses that could wipe out a substantial portion of your account.

Absolutely, sticking to a 1-2% risk per transaction protects against large account losses, which is a critical approach for traders looking to retain cash while pursuing consistent growth.

 

[Bharat Tyagi]

What percentage of your total capital do you typically risk on a single trade, and why?

The percentage of total capital that traders are willing to risk on a single trade, known as the risk per trade or position size, varies among individuals and depends on their risk tolerance, trading strategy, and overall financial goals. A common guideline is to risk between 1% to 3% of total capital on any single trade. This approach helps protect the trader from significant losses and provides a buffer against market volatility.