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.

 

[kit_hung]

Before you play big stakes in trading, you must know yourself first. Check the risk you can tolerate without getting hurt badly. Use only risk money, not the money for bills or food.

If you have 10K, then set a limit of 2 to 3% for one trade. If you have the heart, you can go up to 5 or 10% but don't exceed it. This helps you not to burn everything in one trade. Plan yourself and don't be in a hurry.

 

[Suba]

What percentage of capital must be annualized in each trading session does not only depend on the risk profile but also on your trading skills and experience, but if you are still a beginner it is recommended that no more than 2%.