How Much Risk Is Enough?

[Tobi]

So just how should a trader go about playing for meaningful stakes? First of all, all traders must assess their own appetites for risk. Traders should only play the markets with "risk money," meaning that if they did lose it all, they would not be destitute. Second, each trader must define - in money terms - just how much they are prepared to lose on any single trade. So for example, if a trader has $10,000 available for trading, he or she must decide what percentage of that $10,000 he or she is willing to risk on any one trade. Usually this percentage is about 2-3%. Depending on your resources, and your appetite for risk, you could increase that percentage to 5% or even 10%, but I would not recommend more than that.

 

[Augusta]

I agree with you 2-3% risk level.is not bad. Though it Depends on your resources, and your appetite for risk

 

[Springtime]

That depends on the person's risk tolerance level, and the resources s(he) has.

 

[Augusta]

It is to go for the one you can tolerate without regrets. Try not to take risks you would regrets later

 

[Min George]

There are actually so people that just take a very small risk and that is enough for them t become financially prosperous.