Optimal risk per trade?

Discussion in 'Trading' started by chipmunk, Mar 25, 2010.

  1. End of day or intra day makes little differene.

    but what is the optimal "risk per trade"?

    Everyone talks about never risking more than 1% - 2% per any one trade......but is this true? What are the odds of hitting 10 successive maximum losing trades? What about gappers, etc?

    No-one talks about this...everyone is looking for the perfect entry, best stock, where to get out....but what about position sizing?

  2. End of day or intra day makes little difference?

    It does to me.

    The rate that your trading plan says you can destroy your account is a key to trading that traders ignore. Risk percentages must correspond with the rate you enter trades.