1% risk

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.

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...

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.

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.

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.

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

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.

The amount of risk mentioned here, that is 1%, is good enough. But I don’t think its feasible enough to stick to one risk level while trading forex. The markets keep moving and so we have to adjust ourselves accordingly, only then can we have good profits here.

If your adjusting your stop your entry point was probably wrong to begin with and no real strength behind the move which you can normally see within the first 10 mins of a move ,one has to refine entry points on signals otherwise a trailing stop is recommended if you miss the initial move 20% trailing stop seems to have the best returns for Stocks ,fX depending on the pair and its Vol.

1 -2 % risk is optimum for me. Any more than that and you can have massive draw downs during bad periods

Wins and losses usually clump together, One large loss effects your emotional state a lot more, which can lead to revenge trading, traders tend to hold losses a lot longer than winning trades which is opposite of what professionals do, it takes time to form the right habits over time it's all practice and sticking to your plan.

Everywhere it seems where people do discuss that percent it's really about that anyway for many many times of it. I do hope it will make it better totally and completely. How we can prolong with that? I do not want to hear some more news about other %.

1% is fine

I also agree with you all that 1% risk is fair enough. Risk is inevitable.

Some use a mental stop loss but you need to be disciplined and sometimes spikes turn into major selloffs unless your really confident of the outcome.

With such a small risk, the income will be correspondingly small.