Many writers advise that a disciplined trader should risk no more than 2% of their trading capital on any one trade. On the other hand I have read (here on ET) some people opine that that rule is only really applicable to professional traders (read those that trade other people's money). What do you think? Is 2% too restrictive for a retail trader? Personally, I think that at 5% you have AT LEAST twenty bites at the cherry b/4 you are wiped out. In reality it will be much more than 20 b/cos if you start with $10K & lose $500 on your first trade, on your next trade you should risk $475 (not $500) & so forth.