keep it small to grow tall the big desire will you retire so what this pre that all can't see and why so few can work out clue first step is pass thru the high grass keep in the way as grass do sway to think you know is but a show to really see think A..B..C first 3 alone will not you hone your best of friend is always trend so trend you see not really be and reason such read book too much
Wouldn't that only be the case if your position size was 2%? Eg. bankroll $100,000 open trade with $2,000 (2%) moves 8% to $2,160 profit $160 (0.16% of bankroll)
Yeah, I just used 2% as an example, b/c it's the number I see thrown about forums a lot. I don't use 2% myself, it varies quite a bit depending on what I'm doing. But really you can RISK whatever you want... if you want to make more, you can RISK more. Obviously, there are limits to it though. Especially low volume, highly volatile instruments. Also: I know you know, but you don't even need a dollar amount or you bankroll amount, just use percentages. RISK(%) * Move(%) = profit.
I think I misunderstood your question initially? But I get what you are saying now. But ya... position size, amount risked, RISK, stake size, bet size, whatever you wanna call it. When I refer to RISK, I'm just saying whatever amount your position size is, or how much you can lose, or your stake size. The calculation you did many posts ago, assumed a risk of 100% of your bankroll on every trade. The calculation I then did, and the one you just did above, you have added the RISK component in. I usually just refer to % that the instrument moved from the open to close(ROI in %), and then the RISK(stake/bet size per trade in %). When you have those two numbers, you have all the info you need w/o talking personal details, or dollar amounts.
What confused me slightly is that "amount risked" is usually a fraction of "position size", determined by where you place a stoploss. Eg. bankroll $100,000 position size $10,000 opening price of stock $10 stoploss $8 amount risked $2,000 (2% of bankroll)
Your stoploss would just be a negative ROI. Would be the exact same calculation. AccountGrowth = -ROI(% moved) * RISK(% of Account)
When people talk about risking 2%, they don't normally mean the bet size. For example, with a bankroll of $100,000, risking 2% on an AAPL long trade doesn't mean buying $2000 of stock.