Determine your risk tolerance Back to list

Member SinceJul 08, 2021

Posts 549

Kihn

Jun 23, 2022 a 12:19
This is an option for everyone who intends to trade in any market. Most trading instructors will use percentages such as 1%, 2%, or even 5% of total account value every deal, but how comfortable you are with these quantities will depend on your degree of experience. Because rookie traders lack trust in themselves due to a lack of expertise and familiarity with trading or new systems, using a lower proportion of risk levels makes sense.
For example, if your trading approach averages one transaction per day and you risk 10% of your original balance on each trade, it only takes 10 consecutive losses to deplete your account. Even if you are an experienced trader, taking such a large risk in one deal makes little sense.

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