How Much Should You Risk Per Trade? The 1% Rule Explained
How much should you risk per trade? About 1-2% of your account, meaning the loss if your stop hits. Why the 1% rule keeps a losing streak survivable.
How much should you risk per trade? About 1-2% of your account, meaning the loss if your stop hits. Why the 1% rule keeps a losing streak survivable.
Risk-reward ratio explained: it’s potential profit divided by potential loss. Aim for at least 1:2 so you can win a third of trades and still profit.
Where should you set your stop-loss? At the price your trade idea is proven wrong, just beyond support or a swing point, not a random dollar amount.
Size every trade off a fixed risk percentage. Free calculator turns your entry, stop and account into an exact position size.