While some traders stick to the classic 1-2% rule, others take a more aggressive or conservative approach based on their strategy and market conditions. Finding the right balance can make all the difference in long-term profitability.
What’s your risk percentage per trade?
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I trade in equity stocks for short periods and focus on those that are valuable based on their fundamental measures rather than technical ones.
As a short-term trader, I like to pick stocks that I’m comfortable holding until they recover or increase in value by 20-50%.
I think that risk of 1-2% applies to traders who use leverage.
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4-5%. The amount at risk should depend on the trading system metrics and the instrument being traded. Higher volatility instruments and higher DD systems should have lower % exposure and vice versa.
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I usually risk 5% per trade of the overall account. I am learning to mitigate that, by placing position entry in tranches. First order of 10% of total position, negates that 5% to just 0.5% of the account value. There are also time where I bet huge where a long run is imminent and proven.
Trying to find a sweet spot here. Markets are extremely volatile for a while now.
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For me there’s no definite answer. It just depends on the charts, I mark the breakouts and supports
Though I club the technical analysis with fundamentals of the company to gain confidence, more preference is towards the charts.
Example only for this reply. No recommendation.
Sagility India: fundamentally strong company with strong financials. Bought at very attractive valuation since then ~50% returns. Chart showed breakout at 32₹ bought that time.
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I trade in equities, generally take swing trades, Risk per trade is 5-7 % keeping in mind the Risk to Reward ratio of 1:2.
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