5%??!!! Mate, till now it’s too much; means if you face 4 SLs in a row (which is very common) then 20% lose; this is really aggressive risk ratio.
How do you manage your capital?
- Thread starter Rambo35
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5%??!!! Mate, till now it’s too much; means if you face 4 SLs in a row (which is very common) then 20% lose; this is really aggressive risk ratio.
That’s the perfect ratio to play with! Even, I am also considering 2% as my higher level of risk ratio.
I also think that new traders should not risk more than 1% - 2% of capital on single trade. You need to make sure that your capital is safe and that you are able to cover your losses. I think that 5%-10% can be risked by highly professional traders who know exactly what they are doing on this market
Prior to a forex trader can think of making investment in various sectors, he must understand how he can make proper use of his capital here. Every time a trader can decide on his capital decisions it is imperative to be aware on the fact that which trading tools are important and which will allow him to take proper benefits of those trading tools according to his trading capacities and needs.
Certainly Adam, you can put capital management also in these wording. But the bottom line is that you it is not at all wise to put all your capital in one trade. Try to spread risk and put only certain percentage of your capital at risk. In this way you will be able to keep your capital safe
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