You are probably thinking about trend following systems. These strategies require larger stops, for sure.
Yep, tight, like danger tight is good for Scalping, so tight it hits it's a false hit, ignore back in again 2pts better or worse. Cracking that and not moving SL then turning a 5pt loser into a 30pt loser, took years to crack.
When you suck risk nothing and don't trade, period. Unless you have already backtested your system (200 to 500 historical trades at least) and the setback (drawdown) you are currently experiencing is "normal" and within normal range.
Don't worry about it. Trade what you are comfortable with. If you try to push it, you will get nervous, and you will make stupid mistakes that will lose you money. And, who can say that what you are risking is too little? I have been trading for many years, and have a portfolio that is a lot larger than yours. But, most trades I do, I risk way less than 1 %. Actually way less than 0.1 % as well. I have a strategy that works for me, that I have been using successfully for many years. There is no way in hell I would change it just because some clown tells me that "I need to risk more". So continue trading small positions within your tolerance level. If you exceed it, you will start making silly mistakes. Which for sure will cost you.
You need a part time job. If you can save $500 a month from your job. Then that is $500 a month you could risk in the market. So you could risk $100 a trade, and if you find your self down $500 for the month. Stop for the rest of the month. Going to require discipline to stop.