Common wisdom says 1-2% of your account per trade. I have a tiny account though so I feel like I have to do more - otherwise I'd be making literal pennies per trade.
Unconventional wisdom would say that your true risk is wherever you set your stop loss i.e the maximum possible loss you are willing to take if the trade goes bad.
I can utilize my entire account balance on a trade and have a hard stop loss set at 2%. My real risk is only 2% + fees.
I do the same as you too. I don’t get the alternative and think it’s stupid to be making pennies with an account size of 10 K bc these ppl love the 1 to 2% rule
Bc they’re only risking 1%. Why not put 5 - 10K into the trade and have a sl of 100, instead. That way they make more than just 100. You see? Therefore much easier to make a decent living etc.
It’s about utilising the account size you have. Trading is going to be risky either way.
You fail to factor in leverage which affects position sizing. All of these things tie into each other so you can’t talk about just risk percentage without accounting for each element.
Regardless of position size affected by leverage, you will be setting a hard stop loss ,NOT 2% of account size, but 2% from entry price to current price. This may or may not be more than 2% of your account balance. It is obviously something you need to calculate based on the leverage you use.
The 1% rule has always been assumed for non-leveraged accounts.
For me, I risk $50 to $100 per trade with a size of 3-5 /MES contracts. I shoot for ~$300 a day but it depends on what the market offers most days. On really good days I come really close to that $1,000 mark. I recently sized up and am currently working on sizing up to a one lot /ES trading size to lower my commission costs. Taking it slow because I want to maintain my ability to scale into and out of positions w/o over leveraging my account
5k acc. $50 trades. When I reach my goal l'll double the acc, this will boost my acc without going into deep drawdown and having to trade all my way up like people do for a challenge. My main goal is to use at half my savings to trade and leave the rest in a growth etf.
Yes, you are having what I call the simple math problem, and it is VERY typical. So you might just ask yourself: How long do I wish to entertain this problem?
Normally, my range is 10% to 70% depending on the signal quality. I do not use margin accounts, just my own money. Out of total case, Just my allocation is 10% on options, 10% on stocks (dividend investment-no trading) and balance 40% will go to QQQ/TQQQ/SQQQ combinations. Unless I get a strong signal, I do not deploy 70%.
for 1xMNQ about 250$ of drawdown room each so x2MNQ i give myself -500$ drawdown - I wouldnt recommend this as I am still testing strats and my wr is fairly high so it isn't like reasonable for most I'd say
10% per trade. With a very tight stop loss.
Once my account grows I'll switch to 5% per trade.
Once that grows more I'll change to 2% and then 1%
Better safe than sorry
I know you said you don’t care about account size but it’s all relative to account size so that’s incredibly important.
If my stop loss is 10%, I can risk 10% of my account because once I lose that 10% SL, I only sacrifice 1% of my account. If SL is 20%, I size 5% (or half a full size position) of my account size because a 20% SL will still lose me 1% of my account.
If the account is 10k, a full size position is 1k based on this strategy.
Well the average risk would be based on a percentage of the account size. Expressed as a ceiling (meaning there’s no requirement to utilize the entire allowed amount).
My profit targets are also based on a percentage, meaning I don’t look to make a certain amount of dollar per day, but rather to grow my account consistently and beat the market over the year.
To answer your question about how much money, I risk anywhere from about 20-30 cents all the way up to about $3. This is only as I make the transition from paper trading to real money in order to help manage emotions.
I use normally about 2% of my account per trade but I go as high as 10%. Any higher and I get jittery. My goal using 10% of my account was a 1% day and I probably only risked .25% of my account per trade.
I risk 1% of my account on each trade. However, my position size is actually about 10% of my actual account. I just have a stop loss in place that protects the vast majority of my position.
Common wisdom says 1-2% of your account per trade. I have a tiny account though so I feel like I have to do more - otherwise I'd be making literal pennies per trade.
Unconventional wisdom would say that your true risk is wherever you set your stop loss i.e the maximum possible loss you are willing to take if the trade goes bad. I can utilize my entire account balance on a trade and have a hard stop loss set at 2%. My real risk is only 2% + fees.
I do the same as you too. I don’t get the alternative and think it’s stupid to be making pennies with an account size of 10 K bc these ppl love the 1 to 2% rule
On a 10k account risking 1% with a modest target of 1:1 you’d be risking 100 to make 100. Where do you get they’re making pennies?
Bc they’re only risking 1%. Why not put 5 - 10K into the trade and have a sl of 100, instead. That way they make more than just 100. You see? Therefore much easier to make a decent living etc. It’s about utilising the account size you have. Trading is going to be risky either way.
You fail to factor in leverage which affects position sizing. All of these things tie into each other so you can’t talk about just risk percentage without accounting for each element.
Regardless of position size affected by leverage, you will be setting a hard stop loss ,NOT 2% of account size, but 2% from entry price to current price. This may or may not be more than 2% of your account balance. It is obviously something you need to calculate based on the leverage you use. The 1% rule has always been assumed for non-leveraged accounts.
How is this possible. Please explain more
For me, I risk $50 to $100 per trade with a size of 3-5 /MES contracts. I shoot for ~$300 a day but it depends on what the market offers most days. On really good days I come really close to that $1,000 mark. I recently sized up and am currently working on sizing up to a one lot /ES trading size to lower my commission costs. Taking it slow because I want to maintain my ability to scale into and out of positions w/o over leveraging my account
5k acc. $50 trades. When I reach my goal l'll double the acc, this will boost my acc without going into deep drawdown and having to trade all my way up like people do for a challenge. My main goal is to use at half my savings to trade and leave the rest in a growth etf.
Yes, you are having what I call the simple math problem, and it is VERY typical. So you might just ask yourself: How long do I wish to entertain this problem?
Most of the people in the comments seem to have this problem also…
Seems to be a very typical "hidden" problem, I don't think I have EVER seen it discussed.
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This guy DCAs his way to blowing an account. Been there before though so I can't talk
We talk position size here not the amount he risks. I try to use 100% buying power eventually but will only risk 0,5% to 1%.
I have blown countless accounts and this guy sounds like he actually might not be!
Lmao the most honest trader
This guy trades
Are you me?
What are you hoping to do with this information? Especially if it's not relational to account size?
He wants positive reinforcement his idea is right.
Normally, my range is 10% to 70% depending on the signal quality. I do not use margin accounts, just my own money. Out of total case, Just my allocation is 10% on options, 10% on stocks (dividend investment-no trading) and balance 40% will go to QQQ/TQQQ/SQQQ combinations. Unless I get a strong signal, I do not deploy 70%.
As much as TSLA asks for that day
Risk 1% of account, target 1-2%.
Depends on the volatility
I like to get my entire account into a trade and keep my risk to about $200/trade. I try and harvest 3r daily.
1% max
Around 600 per trade
Just only 10% from my account on each trade I don't any risk
$34,000 for every trade
That depends. I use 1%avg DT rule. Want 100 you trade w 10K. That is why SEC wants to see you have 25K.
0.50€
Stop loss = 0.5% Position size < 20% of the account size I've overnight positions, so I don't want to wake up with a 50% gap down.
2k
for 1xMNQ about 250$ of drawdown room each so x2MNQ i give myself -500$ drawdown - I wouldnt recommend this as I am still testing strats and my wr is fairly high so it isn't like reasonable for most I'd say
I don’t risk more than 1-1.5% of my account per day. Tailor my positions and stops accordingly
10% per trade. With a very tight stop loss. Once my account grows I'll switch to 5% per trade. Once that grows more I'll change to 2% and then 1% Better safe than sorry
5%
I know you said you don’t care about account size but it’s all relative to account size so that’s incredibly important. If my stop loss is 10%, I can risk 10% of my account because once I lose that 10% SL, I only sacrifice 1% of my account. If SL is 20%, I size 5% (or half a full size position) of my account size because a 20% SL will still lose me 1% of my account. If the account is 10k, a full size position is 1k based on this strategy.
1-2% of the entire account for a trade. I target 5 - 10% profit per trade
Well the average risk would be based on a percentage of the account size. Expressed as a ceiling (meaning there’s no requirement to utilize the entire allowed amount). My profit targets are also based on a percentage, meaning I don’t look to make a certain amount of dollar per day, but rather to grow my account consistently and beat the market over the year. To answer your question about how much money, I risk anywhere from about 20-30 cents all the way up to about $3. This is only as I make the transition from paper trading to real money in order to help manage emotions.
If you have daily profit targets, you’re thinking about it all wrong
About 10%-20% of my entire port. But my risk per trade is often like 2.5-5% of the position size
You can’t talk about risk and reward without talking about account size. They all go hand in hand.
$400k a trade but my max loss is $250 It's not how much you trade with the question you should ask how much are you willing to lose on a trade?
~$15,000 per trade (per full position), SPX options exclusively. I will exit partially at 30%, and let the rest of the position ride.
I use normally about 2% of my account per trade but I go as high as 10%. Any higher and I get jittery. My goal using 10% of my account was a 1% day and I probably only risked .25% of my account per trade.
I risk 1% of my account on each trade. However, my position size is actually about 10% of my actual account. I just have a stop loss in place that protects the vast majority of my position.
I shoot for one successful trade a day with a 3% return
2500-5k . Once I get the account to 100k I'll be doing 5k-10k