What is your edge ?

So does it matter what timeframe you use for trend trading?

 

Why is risking 2% better than risking 20%?

 

Maybe because it's "less risky"?

Other than that, it may not be better ... if by "better" you mean more profitable. All depends on the statistics of strategy.

 

Risking 20% a trade will give you 5 chances to blow your account , risking 2 % will give you 50 chances , that is 45 more chances against market.

 

Thank you so much for an answer! You have helped me a lot.

 

I'm just thinking of why one of by best strategies that I had where I turned 150$ to $300 in a week failed...I risked maybe 20% a trade and R:R was 1:1. 1 trade a day. But If I risked only 2% would it of been successful? I think maybe that the R:R would need to be better also in order for it to be successful or no?

 

Risk reward ratio of 1 to 1 is no good , as spreads will eventually eat up profits.When you catch a move , cut your losing trades and run your profits , it is those big winning moves which makes profitable traders .

 

Thanks.

 

Just don't confuse 2% risk per trade with 2% stops per trade.
They are not the same.

 

Explain this statement , or it will be considered a retarded statement