Risk per trade

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  • #180163 Reply
    Albert

      I have read in many places that you should risk up to 2% per trade to protect your capital in the long run. Does that principle apply to day trading? What do people generally risk per day trade?

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      • #180174 Reply
        John J

          I would be thinking about going much lower than 2% if you are day trading, more like 0.25%. If you go on a bad run and lose 5 trades in a row how will you feel being 10% down? That can be a serious blow mentally and hard to keep a cool head.

          Day trading isn’t like position trading where you might only place a few trades over a whole year so you’ve got to lower that threshold. Just my opinion of course.

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          • #180176 Reply
            Albert

              This is amazing, thanks John. I don’t know why I didn’t clock that but makes sense to risk less, at least to begin with.

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            • #180188 Reply
              Sam Grey

                I agree. Less is more. Defo not more than 1%. Period.

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