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5% risk per trade?

  • #201
  • Aug 15, 2019 10:01am Aug 15, 2019 10:01am
5% is too much risk with beginers ... I think it depends on your entry/exit plan
Hmmm! believe it or not, I know a guy who risks 10->15 % per trade &... has been profitable for ~ 8 years
He is not here in FF &in fact He's one my dear friend & one of my master
...want it most but use it worst!
  • #202
  • Aug 16, 2019 11:50am Aug 16, 2019 11:50am
I believe it's all bs when people say you HAVE TO trade just 1 to 5% per trade to be successful, if you have a strategy that is highly accurate and you're in control of your trades it makes sense to use more capital.
  • #203
  • Aug 17, 2019 10:06pm Aug 17, 2019 10:06pm
In trading we should always focus on downside. We usually risk 0.5% or 1% per trade. try always risk less and reward lot. That is the winning formula. If you lose it is hard to even break even.If you lose 5 trades continuously you will only lose 5%. But still you have 95% of your capital to trade and to cover those losses.if you lose 5 trades continuously you will lose 25%. But you have only 85% to cover those losses. You need to gain more than 25% from that balance even to break even.Losing big directly change our mind set too. then we try to do more mistakes due to our emotions. so try to reward much risking less.That is the best way in long run.

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This is my results for this two weeks. i used 0.5% risk per each trade. when we losing we lose small. but when we rewarding we reward lot than loses. That is the way in trading. We cannot be 100% correct. But we able to manage risk. We can set our losses small and gains large.that is the one of most controllable part in trading
People don't care about what you say, they care about what you build
  • #204
  • Aug 18, 2019 8:08am Aug 18, 2019 8:08am
Quoting Sam32
I believe it's all bs when people say you HAVE TO trade just 1 to 5% per trade to be successful, if you have a strategy that is highly accurate and you're in control of your trades it makes sense to use more capital.
Whatever the accuracy it is; 5% is always dangerous! That means; consistent 3 SL brings you 15% loss!
  • #205
  • Aug 18, 2019 8:14am Aug 18, 2019 8:14am
Quoting GeorgeBaile
{quote} Whatever the accuracy it is; 5% is always dangerous! That means; consistent 3 SL brings you 15% loss!
only if you wait for your stop to be hit
  • #206
  • Aug 19, 2019 3:30am Aug 19, 2019 3:30am
which risk ratio is more comfortable during news ? there is anyone who can explain ?
  • #207
  • Aug 20, 2019 4:14am Aug 20, 2019 4:14am
I think the lower your risk level, the better (1% or less)! If you have a good system and an edge, why not give it every opportunity to succeed and paly out??
  • #208
  • Aug 20, 2019 8:17am Aug 20, 2019 8:17am
Quoting tropical_g
{quote} only if you wait for your stop to be hit
In this case; I think closing a trade before the TP or SL isn’t a good habit at all!
  • #209
  • Aug 20, 2019 9:05am Aug 20, 2019 9:05am
Quoting GeorgeBaile
{quote} In this case; I think closing a trade before the TP or SL isn’t a good habit at all!
the market is fluid, not rigid. waiting for stops or targets to be hit is a rookie mistake. the market doesn't care about your arbitrary stops or targets it only cares about information flow which is in a constant state of flux. a trader that believes hard set targets and stops is compatible with a fluid market really doesn't understand it at all.
  • #210
  • Aug 20, 2019 10:47am Aug 20, 2019 10:47am
That is true. But on the other hand not sticking to your strategy and closing a position too early is also a rookie mistake.
  • #211
  • Aug 20, 2019 1:25pm Aug 20, 2019 1:25pm
Quoting JimmyAlgo
I think the lower your risk level, the better (1% or less)! If you have a good system and an edge, why not give it every opportunity to succeed and paly out??
1% risk ratio is more appropriate for the traders who are particularly beginners , but as a newcomer due to poor knowledge its much difficult to maintain same risk ratio. so, i dont believe under 5% risk ratio , because every faction is volatile in this stock market.
  • #212
  • Aug 21, 2019 12:46pm Aug 21, 2019 12:46pm
Quoting MarkFxAnde
{quote} 1% risk ratio is more appropriate for the traders who are particularly beginners , but as a newcomer due to poor knowledge its much difficult to maintain same risk ratio. so, i dont believe under 5% risk ratio , because every faction is volatile in this stock market.
I think it in some cases in this the opposite Some beginners would just like to see if they have it.. and they would like to see that fast... For example, if they can DOUBLE the account.. within certain amount of time... (my first test...)... But later, as they grow the account, if they do... they might, depending on the leverage/account levels/sizes of course... reduce the risk per trade... I mean I have no problem risking 5% per trade.. at "burners".. meaning, maximum exposure for epic profits... but with certain account (size) or when trading for someone else... or giving signals... I might be much more conservative... Specially if the DD (DrawDawn) is limited to a single digit... Then one must derive "formula" or parameters from there.. Because investors are interested in (the smart ones at least) into DRAWDAWN and THEN at RETURN.. So if you have like 10% max DD and expected return of 20%.... 10% is a base for risk per trade calculation... They might not say how much can you risk per trade.. just this RoMaD (Return over DD) would be all they want... with MAX DD and MIN Return of course... So you start like this..
If max accepted or even guarenteed DD is 10%.. then if you risk 5%+ (of an account) per trade... you might only get 1-2 SHOTS! before "GAME OVER"... or even worse... before BEYOND the promised DD... I would say that 10-20trades would be some ballpark maybe to start.. Which means that at 10% DD.. risk per trade would be like 0,5-1%... If one wants to have 10-20 (reserve) shots ... Adjust accordingly.. I seem to be around that ballpark, because I do not like overtrading or marathon trading.. but much prefer cat/cheetah style.. Waiting for opportunity and STRIKE... but do not want to (when trading larger account at least) to be stopped just after a few shots... But not to wait to long either... So I would settle for 10-20 (buffer trades) aka 0,5-1% risk per trade atm for LARGER account size... For burners (own or if others agree)... it can go up to 100%... but that is another story
Can you afford to take that chance?
  • #213
  • Aug 21, 2019 3:08pm Aug 21, 2019 3:08pm
Thats what they say you can trade but honestly if you do your graphing work and your confident I would go for a bigger lot size. You aren't gonna m are money for real only risking 5%, in my opinion.
  • #214
  • Aug 23, 2019 10:42am Aug 23, 2019 10:42am
Quoting Justjalloh
Thats what they say you can trade but honestly if you do your graphing work and your confident I would go for a bigger lot size. You aren't gonna m are money for real only risking 5%, in my opinion.
Hi; do you have any real time experience on 5% risk on per trade position? Really?
  • #215
  • Aug 25, 2019 2:38am Aug 25, 2019 2:38am
If you risk 5% it will take approx 100 consecutive trading losses to lose most of your capital
If you risk 2% it will take approx 250 consecutive losing trades to do the same

In the end if you are crap at trading or your strategy is flawed, risking 1-2% per trade wont make you profitable....it will only delay the inevitable.

The only benefit 2% risk does is the mental comfort it gives you in knowing I have more margin for error in my trading.....which is not always a good thing.
  • #216
  • Aug 25, 2019 9:51am Aug 25, 2019 9:51am
Quoting shrips
If you risk 5% it will take approx 100 consecutive trading losses to lose most of your capital If you risk 2% it will take approx 250 consecutive losing trades to do the same In the end if you are crap at trading or your strategy is flawed, risking 1-2% per trade wont make you profitable....it will only delay the inevitable. The only benefit 2% risk does is the mental comfort it gives you in knowing I have more margin for error in my trading.....which is not always a good thing.
Basically; money management is not for the profit; it’s the protection of our trading capital!
  • #217
  • Aug 26, 2019 7:26am Aug 26, 2019 7:26am
Quoting ZikriIrfan
{quote} Basically; money management is not for the profit; it’s the protection of our trading capital!

you missed my point...even with good money management you can still lose!
  • #218
  • Aug 26, 2019 2:05pm Aug 26, 2019 2:05pm
Quoting shrips
If you risk 5% it will take approx 100 consecutive trading losses to lose most of your capital If you risk 2% it will take approx 250 consecutive losing trades to do the same In the end if you are crap at trading or your strategy is flawed, risking 1-2% per trade wont make you profitable....it will only delay the inevitable. The only benefit 2% risk does is the mental comfort it gives you in knowing I have more margin for error in my trading.....which is not always a good thing.
If you do 100 consecutive trading losses. you should better think about another line of work.
Whether you think you can, or you think you can't,you're right. H.F.
  • #219
  • Aug 26, 2019 9:00pm Aug 26, 2019 9:00pm
If a strategy is atleast 75% accurate I can see 5% risk not much of a deal but money management still would be important in the long term. To build up the account in the short term maybe not. But if you have a $100,000 balance and risking $5000 per trade than it's not so easy to pull the trigger which is why it's smart to stick to 1% atleast with a big balance.
  • #220
  • Aug 27, 2019 1:50am Aug 27, 2019 1:50am
Quoting teamplayer4
If a strategy is atleast 75% accurate I can see 5% risk not much of a deal but money management still would be important in the long term. To build up the account in the short term maybe not. But if you have a $100,000 balance and risking $5000 per trade than it's not so easy to pull the trigger which is why it's smart to stick to 1% atleast with a big balance.
That's right. Everybody mentions only %%%%% and nobody take in to account actual account size and I don't think same %%%% strategy can by apply on 10 000,- or 100 000,- account and if could be,probably traders psychology will be weakest link.
Whether you think you can, or you think you can't,you're right. H.F.
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