Most traders advise that one should only risk 1-2% of one's account per trade. My questions: 1) Does that figure in leverage? i.e. do you take 1% (of let say 10,000 USD account) which is 100 USD and then leverage that amount, or does the 1-2% figure already account for leverage used? 2) I'm not sure I understand why 1-2% is the limit for traders when investors diversify 20-30% of their wealth into stocks, gold, etc. Please clarify. Thank you.