How much to risk per trade?

Discussion in 'Risk Management' started by castor_t, Jun 12, 2013.

  1. deaddog

    deaddog

    (Grin) But you did not mention ignoring slippage.

    Sorry but I can't point you to an academic study only my own experience that it is easier to take losses when you have sufficient capital.

    Calculate your slippage as a percentage of risk and you will see how capital becomes a factor.

    FWIW I find it very difficult to realistically ignore commissions. I'm well capitalized and use 0.5% risk.
     
    #41     Feb 2, 2019
  2. twox

    twox

    It is very important to calculate the risk to reward. If you invest without knowing how much you can earn or lose, so is better not invest.
     
    #42     Mar 31, 2019
    murray t turtle likes this.
  3. IamaMars

    IamaMars

    Before getting into any trade, make sure you never risk more you can afford to lose. Never risk so much in one trade, so that you don't end up losing all your capital. Never ignore the issues or spread and slippage since its easier to accept losses if you have enough capital
     
    #43     Apr 10, 2019
  4. %% Exactly.
    Risk is like Edgar Allen Poe, Poem,Raven+ Reagan. How taxes galore?? Quoth the Reagan ; less is more:D:D
    A good goal[ IBD idea works well] is risk $7 0r $8.00 , to make 24 or $30.But that's a cash goal +guide.
     
    #44     Apr 10, 2019
  5. Risk tolerance will vary from person to person. In context of capital and risk , it is something that you will only be able to decide. However , you must not invest more than you can afford to lose. We know that higher the risk , higher the profits . But, instead of going by this rule alone , you should calculate the risk - reward ratio in order to close a better deal and generate good profits.

    And since you have started trading ,trade in securities which are less risky and offer high returns. Always plan your everyday strategy and close the trading platform once you have achieved the target. Over trading is bad and leads to greed.
     
    #45     Aug 2, 2019