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What should be the risk percentage?
Biedrs kopš
298 ieraksti
Jan 12, 2021 at 12:41
Biedrs kopš
298 ieraksti
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.
Biedrs kopš
538 ieraksti
Jan 12, 2021 at 14:24
Biedrs kopš
538 ieraksti
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.
Biedrs kopš
788 ieraksti
Jan 12, 2021 at 14:31
Biedrs kopš
788 ieraksti
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.
Biedrs kopš
231 ieraksti
Jan 13, 2021 at 02:07
Biedrs kopš
231 ieraksti
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.
Biedrs kopš
38 ieraksti
Jan 13, 2021 at 07:16
Biedrs kopš
38 ieraksti
It actually depends on a trader's risk tolerance, Different with everyone. Hard to standardize.
Biedrs kopš
15 ieraksti
Jan 21, 2021 at 11:35
Biedrs kopš
15 ieraksti
I agree with you. I never risk more than 1-2% to be on the safer side in my trades.
Biedrs kopš
399 ieraksti
Biedrs kopš
29 ieraksti
Biedrs kopš
48 ieraksti
Jan 28, 2021 at 09:44
Biedrs kopš
48 ieraksti
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.
Biedrs kopš
26 ieraksti
Biedrs kopš
869 ieraksti
Jan 29, 2021 at 09:08
Biedrs kopš
869 ieraksti
Traders should not take more than 5% risk per trade. That’s why traders can survive in the market long.
Biedrs kopš
27 ieraksti
Feb 04, 2021 at 09:59
Biedrs kopš
27 ieraksti
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.
Biedrs kopš
33 ieraksti
Feb 09, 2021 at 08:17
Biedrs kopš
33 ieraksti
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
Biedrs kopš
33 ieraksti
Feb 09, 2021 at 11:22
Biedrs kopš
33 ieraksti
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.
Biedrs kopš
33 ieraksti
Feb 10, 2021 at 07:03
Biedrs kopš
33 ieraksti
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.
Biedrs kopš
28 ieraksti
Feb 10, 2021 at 09:52
Biedrs kopš
28 ieraksti
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.
Biedrs kopš
27 ieraksti
Nov 09, 2021 at 14:57
Biedrs kopš
27 ieraksti
Actually, every trader decides by himself, what risk percentage to set. The genral rules sound like never open a position with more than 2-3% from your total deposit. However, traders don't often comply with this rule. Every trader wants to get as much money as he can, so he decides to open a position with 10-20% or the whole amount of deposit. It's prohibited, in case you want to build long-lasting trading career. Nevertheless, there are some traders who can open position with a half or the full of the deposit, but they're professionals and often they know what to do.
Biedrs kopš
401 ieraksti
Nov 16, 2021 at 16:58
Biedrs kopš
401 ieraksti
Really does depend on your own risk tolerance. Personally I only risk 1-2% on a single trade. Maybe 3% if it's something I'm extremely confident about.
Biedrs kopš
399 ieraksti
Nov 17, 2021 at 08:22
Biedrs kopš
399 ieraksti
1-3% is ideal as according to probabilities in 10000 trades you will have a run of 13 straight losers. Now that may seem like a lot of trades but if you're in this for the long haul you'll hit that and also there is no way to determine when they will come so could come at the beginning of your career
Biedrs kopš
213 ieraksti

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