Profitable traders how much do you risk per postion?

Discussion in 'Strategy Development' started by Daal, Nov 24, 2005.

How much of your total equity you risk per position?

  1. 0-2%

    60 vote(s)
  2. 2-4%

    32 vote(s)
  3. 4-8%

    11 vote(s)
  4. 8% or more

    20 vote(s)
  1. Daal


    I wonder whats the exposure most traders here submit themselves to
  2. It depends :)

  3. m22au


    You probably need to distinguish between anticipated risk (i.e. the % amount of the trader's equity that he is willing to lose before closing the position) versus the potential risk (i.e. if the position gaps past the pre-determined stop loss point).

    Based on some posts seen on this board previously, although some traders set out to risk less than 5% on individual trades, the potential loss they stand to make is sometimes more than 100% of their account.

  4. cnms2


  5. acrary


    Could never imagine risking more than 1.5% per-trade.
  6. Depends how you define risk...for example w/ the dummy trades I do, I have a tight stop loss in play so usually less than 1%.
  7. I probably risk less than most traders with my new Retail Spot Forex system.

    Many of my collegues have complained that I am too conservative. But I think the answer is, what is most comfortable for you.

    Only YOU can make an educated decision and only after some experience with failing and blowing up to drive the discipline home.

    Michael B.
  8. Daal


    Would risk 2% really put you at risk of ruin?My guess is not, so why not risk a little more, it might be more unconfortable yet on the end of the year you will bank more cash. If you trade OPM, then thats a argument. My guess is that you hold a portifolio with 1.5% max risk on each position and your total risk is higher
  9. It depends how big your account is...

    If he has a $500,000 account then losing 2% wouldn't be someone with a $25,000 account is wouldn't be as bad.
  10. cnms2


    2% is to 2% :)

    When you reduce your risk, you reduce your potential profit too.
    #10     Nov 24, 2005