there are countless number of posts here advising how u should not risk more than 2% a trade and cut losses quicky. this is ok if u want to make a living out of trading. but if you want to make serious money u won't get anywhere. to make serious money like the biggest traders have you must: 1. trade very infrequently but when you trade u place a 'bet' not a trade. u trade not on something that's already priced in you trade the outcome on something that is uncertain. 2. you risk 100% of your capital with ur stop loss placed at 80%. your target should be minimum 50% on the upside. this is the only way to make serious money. sure if you can't place good bet trades you blow and thats how it goes. if you're right you should have roughly 2x the level u started with you give u 2 extra life lines. day trading with peanuts and 1% risk/reward target won't get you anywhere. chances are you'd get bored and tired and actually lose money. you obviously need to be patient for that good call bet. not random trades. so in short: infrequent trades max risk (100% capital) betting on uncertainty - not expectations or anything getting priced in the market. this strategy will have SD of 50%. so you will be up and down drastically but on average if you're calling correctly you should be up 50% every week.. if u like more details i will clarify. remember 2% this 1% that is a losers game. to make serious money you have to place big trades. big bets. take big risks with very wide stop loss points.