Michihito
Členem od Jul 19, 2020
298 příspěvků
Jan 12 2021 at 12:41
Actually risk percentage depends on many factors. How much you can tolerate is a factor. It also associated with your winning ratio. A trading strategy is a combination of all factors according to your skills, capital, risk tolerance power. You have to make a system so that you can survive in the market and make profit.
Seb King
(sebking1986)
Členem od Apr 09, 2019
538 příspěvků
Jan 12 2021 at 14:24
Agreed but that being said a rule of thumb for beginners is 1-2% regardless of RR per trade. How many trades are placed at once is another question. Personally no more than 3 at a time
If you can't spot the liquidity then you are the liquidity.
AliaDare
Členem od Jul 19, 2020
788 příspěvků
Jan 12 2021 at 14:31
I don't think you should risk more than 2% for a trade. If you risk more than 2%, it will never be under the management of money management.
Dictiony
Členem od Apr 01, 2020
231 příspěvků
Jan 13 2021 at 02:07
AliaDare posted:Yes, exactly the advice which I was also thinking of. We should not adopt the risk over 2% to keep our trade safe.
I don't think you should risk more than 2% for a trade. If you risk more than 2%, it will never be under the management of money management.
richard2
Členem od Oct 19, 2019
38 příspěvků
Jan 13 2021 at 07:16
It actually depends on a trader's risk tolerance, Different with everyone. Hard to standardize.
tiahsherman
Členem od Dec 21, 2020
15 příspěvků
Jan 21 2021 at 11:35
I agree with you. I never risk more than 1-2% to be on the safer side in my trades.
CraigMcG2020
Členem od Jul 20, 2020
399 příspěvků
Jan 21 2021 at 14:57
1% risk max.
LeonRocky3
Členem od Jan 13, 2021
29 příspěvků
Jan 21 2021 at 19:43
Personally I give myself 2% risk
MichaelEX
Členem od Jan 21, 2021
48 příspěvků
Jan 28 2021 at 09:44
The risk-reward ratio measures how much your potential profit is, for every dollar you risk.
If you have a risk-reward ratio of 1:3, it means you’re risking $1 to make $3.
If you have a risk-reward ratio of 1:3, it means you’re risking $1 to make $3.
downtown
Členem od Nov 08, 2019
26 příspěvků
Jan 29 2021 at 07:35
Either 2% or 1:2 risk ratio are fine
LyudmilLukanov
Členem od Jul 23, 2020
869 příspěvků
Jan 29 2021 at 09:08
Traders should not take more than 5% risk per trade. That’s why traders can survive in the market long.
gildlef
Členem od Nov 25, 2020
27 příspěvků
Feb 04 2021 at 09:59
It is wise to not risk more than 2% of your trade. This will be safe and you won’t end up losing a lot.
phillipgriffin
Členem od Nov 24, 2020
33 příspěvků
Feb 09 2021 at 08:17
downtown posted:Is there any strategy or any method to set the risk reward ratio for a day trader like me?
Either 2% or 1:2 risk ratio are fine
phillipgriffin
Členem od Nov 24, 2020
33 příspěvků
Feb 09 2021 at 11:22
phillipgriffin posted:Call it a strategy or not, there’s actually a simple formula that asks you to compare the amount you’re willing to risk on the trade to the prospective gain. Statistically speaking, if you’re planning to have a prospective profit of $600 as compared to a projected risk of $200, the risk reward ratio in this case would be 1:3. So, now if you place say 10 trades with a ratio of 1:3 and only made profit in 3, you would still make $400. A decent amount of profit despite being correct only 30% of the time.downtown posted:Is there any strategy or any method to set the risk reward ratio for a day trader like me?
Either 2% or 1:2 risk ratio are fine
The 1% rule can give you the leverage to withstand a long string of losses. However, before you plan on risking even 1% of your money, I’d suggest you to practice on the demo account. I did the same with my brokers Fxview and IB to have a better understanding of how the market works.
phillipgriffin
Členem od Nov 24, 2020
33 příspěvků
Feb 10 2021 at 07:03
phillipgriffin posted:Ok, so I do understand that the 1% rule is for the beginners, rather it’s the most critical rule they need to set and follow. But what if I’ve spent years trading? Do I still need to follow this risk reward ratio?phillipgriffin posted:Call it a strategy or not, there’s actually a simple formula that asks you to compare the amount you’re willing to risk on the trade to the prospective gain. Statistically speaking, if you’re planning to have a prospective profit of $600 as compared to a projected risk of $200, the risk reward ratio in this case would be 1:3. So, now if you place say 10 trades with a ratio of 1:3 and only made profit in 3, you would still make $400. A decent amount of profit despite being correct only 30% of the time.downtown posted:Is there any strategy or any method to set the risk reward ratio for a day trader like me?
Either 2% or 1:2 risk ratio are fine
The 1% rule can give you the leverage to withstand a long string of losses. However, before you plan on risking even 1% of your money, I’d suggest you to practice on the demo account. I did the same with my brokers Fxview and IB to have a better understanding of how the market works.
salamibrish
Členem od Nov 24, 2020
28 příspěvků
Feb 10 2021 at 09:52
phillipgriffin posted:Well no, that entirely depends on your comfort as a trader to bear the loss. See, the 1% rule can be twisted depending on your account size and the market. You simply need to set a percentage that you’re comfortable playing and risking around with. Once done, all you have to do is calculate your trade’s position size depending on the entry price and stop loss.phillipgriffin posted:Ok, so I do understand that the 1% rule is for the beginners, rather it’s the most critical rule they need to set and follow. But what if I’ve spent years trading? Do I still need to follow this risk reward ratio?phillipgriffin posted:Call it a strategy or not, there’s actually a simple formula that asks you to compare the amount you’re willing to risk on the trade to the prospective gain. Statistically speaking, if you’re planning to have a prospective profit of $600 as compared to a projected risk of $200, the risk reward ratio in this case would be 1:3. So, now if you place say 10 trades with a ratio of 1:3 and only made profit in 3, you would still make $400. A decent amount of profit despite being correct only 30% of the time.downtown posted:Is there any strategy or any method to set the risk reward ratio for a day trader like me?
Either 2% or 1:2 risk ratio are fine
The 1% rule can give you the leverage to withstand a long string of losses. However, before you plan on risking even 1% of your money, I’d suggest you to practice on the demo account. I did the same with my brokers Fxview and IB to have a better understanding of how the market works.
forextrader777
Členem od Jan 16, 2021
133 příspěvků
Feb 12 2021 at 11:28
Risk percentage depends upon your risk tolerance. Both are directly proportional to each other.
RobSchiz
Členem od Mar 25, 2021
567 příspěvků
Nov 07 2021 at 19:55
forextrader777 posted:Yes. you are right.
Risk percentage depends upon your risk tolerance. Both are directly proportional to each other.
GraceGilm
Členem od Oct 21, 2021
154 příspěvků
Nov 09 2021 at 14:32
some traders generally only work with risk interest, because this and profit can greatly hang