There is moderately consistent 'advice' around many forums to define limits on losses. One rule of thumb that makes approximate sense is 'never risk >1% of your trading account'. This sounds sensible, but is a matter of opinion. Many other have talked about 'blowing their accounts'. My question is (at the moment) what is your personal % of all you own in your trading account. So total up your house, car, all savings . . . I think this would be interesting to compare. For me, my trading account is ~ 1% of my total net worth. What is it for you? The stats across ET would be interesting.
for me it is about 95% of my money, i have some assets outside, but about equivalent debt to cancel them out- so effectively it is 95% of my net worth with 5% in the bank for random expenses.