1% risk is more appropriate to avoid unfortunate losses , but honestly speaking its really difficult to keep same percentage when trading in practical , risk is much volatile and no way to control it completely.
Oct 17 2019 at 11:05
There is of course the way to control risk exactly. It is matter of proper calculation.
The thing is if you risk just 1% of your account what would be your profit.
Or even loss if your 1% risk is hit often...
The thing is if you risk just 1% of your account what would be your profit.
Or even loss if your 1% risk is hit often...
A 1% risk is an unattainable dream, because if you reduce the lot size, there will be little profitability, and if you reduce the stop loss, then it is possible to catch a false movement against your analysis.
Oct 26 2019 at 16:04
Mohammadi posted:
1% risk is more appropriate to avoid unfortunate losses , but honestly speaking its really difficult to keep same percentage when trading in practical , risk is much volatile and no way to control it completely.
It’s a decent %; although I am doing my live trading with 2% risk reward ratio! But sometimes, I am also using the 1%.
Yeah that’s true! Sticking to a particular percentage risk only is not realistic. It has to be adjusted as per situations.
Nov 06 2019 at 11:17
Jumo posted:
A 1% risk is an unattainable dream, because if you reduce the lot size, there will be little profitability, and if you reduce the stop loss, then it is possible to catch a false movement against your analysis.
I would say so
I think the risk parameters should not be set by a hard percentage point. I've heard this many times over the years, 'don't risk more than 2%'. But realistically speaking, I think it's best to take into account the trading style. For example, if a trader only takes 5 trades a year, then 2% does seem appropriate.
What about a trader that does 5 trades a day? or 10 trades a day? What if a trader went 0 for 10 on the day while risking 2% per trade? it doesn't quite make sense.
Also, some traders have a good risk to reward ratio but perhaps not so good of a win to loss ratio. In each case I think the percentage being risked needs to be adjusted to suit the strategy.
Just my opinion, but I don't believe in the 'one size fits all' view when it comes to percentage risked.
What about a trader that does 5 trades a day? or 10 trades a day? What if a trader went 0 for 10 on the day while risking 2% per trade? it doesn't quite make sense.
Also, some traders have a good risk to reward ratio but perhaps not so good of a win to loss ratio. In each case I think the percentage being risked needs to be adjusted to suit the strategy.
Just my opinion, but I don't believe in the 'one size fits all' view when it comes to percentage risked.
If you don't stay humble, the market will make you humble
controlling risk particularly when market moves at random is a great skill , in spite of having this ability sometimes you will not avoid unfortunate losses. its a real character in this stock.
Mohammadi posted:
1% risk is more appropriate to avoid unfortunate losses , but honestly speaking its really difficult to keep same percentage when trading in practical , risk is much volatile and no way to control it completely.
1% is fair enough yeah
momchil_slavov@
Jan 19 2020 at 21:17
It's possible to use a range 0.75 to 2% on most trades with eur/usd and eur/Gbp having lots of small losses doesn't really matter if your method is to let a trade run on longer time frame, everyone has a different method and has to find what there comfortable with.
Strength and honor.
