1-2% Risk per Trade (Risk Management)
The first rule for a trader who understands risk management is setting the risk per trade. Don't risk more than 1-2% of your deposit on a single trade.
This means you should decide in advance how much you're willing to lose on one trade if the price moves against you.
You also need to set a daily risk limit—the percentage of your deposit you’re willing to lose in one trading day. Keep it at 3-5% per day. If you hit that limit, stop trading for the day.
How to Calculate Risk per Trade:
Risk = Deposit × Risk %
For example, if your deposit is $1000 and you choose to risk 1% per trade:
1000 × 0.01 = $10 (your risk per trade).
For Futures Trading:
- If you use leverage, you must calculate risk carefully so you don’t lose more than 1-2% of your total deposit.
- A stop-loss is a must—without it, you can quickly lose your entire deposit.
Final Tips:
🚫 Don't trade emotionally—it's better to accept a small loss today and start fresh tomorrow.
📌 Stick to your plan—never change your risk randomly. Always keep 1-2% per trade.
✅ Check your analysis and stop-loss before entering a trade.
