Hello Folks, How much should one risk in a single trade and why? This should be 0,5, 1 or 2%? I think that the risk musn't be more that 1%, because with higher risk one can be heavily hurt. What is you opinion?
I would say do no more than 1%-2% per trade. It would depend on your time horizon and could be even lower for day trades. I'm sure if you search around ET you'll find this question already discussed multiple times (which is probably why no one has replied so far).
if you are disciplined,you should have a maximum drawdown per day,if you lose that much you stop trading for the day,if you have positions you need to know what line is support or resistance for the stock or bond or etf you are trading,if it breaks that you are out,no ifs, ands ,or buts,then you stayed with your discipline,gave it the respect it deserves