Traders Laboratory - View Single Post - How much should one risk per trade?
View Single Post
  #2 (permalink)  
Old 08-31-2006, 01:09 AM
Soultrader's Avatar
Soultrader Soultrader is offline
Soultrader is focusing on discipline.

Trader Specs
 
Join Date: Aug 2006
Location: Tokyo, Japan
Posts: 3,225
Thanks: 165
Thanked 467 Times in 208 Posts
Send a message via Skype™ to Soultrader
Quote:
View Post
I keep reading about different ways to manage risk. For example, one common rule I read about is to risk no more than 2% of your capital and taking a break after losing 10% per month.

Do you guys use a fixed percentage when calculating risk?

It really depends on your account size and risk tolerance. I am comfortable risking 10 points per trade. For a $10k account that is approx 0.5% risk when trading one contract.

I would not risk 2% on a $10k acccount per contract. My rule is to trade one contract per $10,000. So the risk always stays low.

__________________
James Lee - Founder
Forum Guidelines | Forum Manual | Support Coder | Report a Bug
------------------------------------------------------------------------------------
Empowering traders with knowledge.

Please support TL by visiting our sponsors. Thanks!
Reply With Quote