Forex Forums  

Go Back   Forex Forums > Forex Forums > Forex Training

LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 10-24-2011, 09:17 AM
Join Date: Apr 2011
Posts: 73
Default Whats your Risk percentage per trade?

Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management

Whats your risk % per trade?
Or should i say, what’s your risk appetite?
To be a successful forex trader. You will need to have a proper money management system.
It starts with identifying what level of risk % per trade will you risk.
As a guide, a safe and good risk percentage will be from 1% – 3%.
Anything higher than 3% will be relatively risky.
Why is this so.
If you understand, the forex market can do anything.
Even if you are sure this is the MOST perfect setup.
It MAY NOT end up the way you expected it to be.
Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management
First, you must understand that anything can happen in the forex market.
Just for example, even if it is the most perfect setup. If a major institution pumps in a large sum of money at that period of time. It can change the direction of the market for a short time frame.
And when the retail investors see the market moving in the direction stipulated by the major institution, they will then follow suit and enter the same way.
WHICH causes the movements in the market.
But of course, this doesn’t happen always.
What i’m saying is, anything can happen in the forex market.
So even if you are the best forex trader in the world. You will not have a 100% winning rate as well.
You will still lose as the market can do anything.
Which is why, it is not wise to have a high risk per trade.
Forex Risk Management – For example, if a trader risk 10% per trade.
And a series of unfortunate events happen to him, (maybe it’s a distraction, maybe there’s an earthquake etc)
As a result, he made a series of 5 losing trades.
He would have wipe of 50% +- of his trading capital because he risked 10% per trade.
And with just 50% left, it will be hard for him to make back his loss.
So if you see what i meant.
Forex Risk Management – For example, if you risk 2% per trade.
With a series of 5 losing trades. You would only lose 10%+- of your capital.
Which is not to bad.
With a good trading system, we can easily make back the money loss.
Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management
But here comes the big question.
What is your risk appetite?
You see, there is absolutely no point into asking you to risk 1% per trade.
Forex Risk Management – Eg. Capital $5000
Risk of 1% = $50 per trade.
If at the back of your mind, you do feel that $50 per trade is too little.
Then you will most likely find and trade even more trades that you usually should – in order to make more money. Right?
Therefore, the correct way to set your risk % per trade varies with different individuals.
You must ask yourself.
Forex Risk Management – Eg. Will you be satisfied with
$50 per trade or
$100 per trade or
$150 per trade
based on the capital of $5000
Once you got an answer, you got your risk percentage.
Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management
1) Your risk percentage cannot be too high. As mention a good gauge is 1% – 3%.
2) Your risk percentage must meet your risk appetite. There is no point in risking 1% if you find the amount too little and does not satisfy your hunger.
So there you go.
Once you have set and decided on your risk % per trade.
For example, in a series of trades. You cannot have eg. 1% on 5 trades, then 3% on 5 trades etc.
Because if you play it this way, and what if you make money on the 5 trades with 1% risked, and lose money on the 5 trades with 3% risked. (which usually happens!)
Therefore, stick firmly to the risk percentage per trade which you have set.
Eg. If you set 2% risk per trade.
From now on, every trade you take – You will risk 2% per trade.
This way, you will be consistent and you are on the right track to success.
This is part 1 of the 2 series of Forex Risk Management.
Stay tuned for the 2nd part.
Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable.
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
Reply With Quote
  #2 (permalink)  
Old 04-06-2015, 09:42 AM
Senior Member
Join Date: Jun 2013
Posts: 139

your way is ok. it is the same my opinion. we should get about 1-2% risky. when we lose we wasn't effect by it because it is small amount. when we can get money with it. we can encrease our balance . our profit amount will be automatic encreasing. we can use the bonus forex. i always get highest bonus with my broke- liteforex. when they supply more bonus. i will take it. and i can encrease our profit as our plan
Reply With Quote
  #3 (permalink)  
Old 04-22-2015, 12:54 PM
Join Date: Jul 2013
Posts: 95

Yes its seems ok to risk 2to3%, but i think its not very practical as while trading we have certain prediction about the trade and we tend to increase our percentage for risk by many folds.
Reply With Quote
  #4 (permalink)  
Old 06-19-2015, 04:19 PM
Senior Member
Join Date: Jun 2013
Posts: 139

i can allow 10% risky. it will be safe for my order. when i put long SL i can keep my order longer and i will have more chance with it.
Reply With Quote
  #5 (permalink)  
Old 07-29-2015, 04:58 AM
Junior Member
Join Date: Jul 2015
Posts: 4

Percentage of not be more than 5% for me
Reply With Quote
  #6 (permalink)  
Old 01-11-2016, 09:40 AM
Join Date: May 2013
Location: indonesia
Posts: 48
Send a message via Yahoo to samuel_p80

Originally Posted by Capitalboosters View Post
Percentage of not be more than 5% for me
You have done good strategy guys, not more than 5% is great for your account.
Reply With Quote
  #7 (permalink)  
Old 01-21-2016, 07:11 PM
Join Date: Aug 2015
Posts: 30

it is big risk if you do not use analytics and indicators in your trading, this instruments can help you to trade and get good profit i use analytic from liteforex
Reply With Quote
  #8 (permalink)  
Old 11-10-2016, 07:59 AM
Join Date: Oct 2016
Posts: 75

I mostly prefer to keep my risk pretty much controlled instead of over doing anything. I keep 2-3% risk per trade which is easier for me to handle. I get extra advantage which comes with OctaFX broker using their 50% bonus on deposit scheme, it’s very cool and helps me working out with risk management nicely and even then I can stay up for making good profits, so that’s just what you really wish and want if you want to be successful.
Reply With Quote
  #9 (permalink)  
Old 11-21-2016, 04:37 PM
Senior Member
Join Date: Sep 2016
Posts: 198

I will believe it should be between 2-5%
Reply With Quote
  #10 (permalink)  
Old 11-29-2016, 07:28 AM
Join Date: Oct 2016
Posts: 75

I like to change my percentage regularly because I take it according to my confident level, as if I am confident enough then I can easily work it out nicely and that helps bringing so much reward to me. But, it’s vital that we don’t get greedy or start pulling unnecessary wires. I trade with simple and straight forward approach which is helped by OctaFX broker using their mighty 50% bonus on deposit scheme; it’s just sensational and works beautifully!
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

All times are GMT. The time now is 06:16 AM.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.1.0 ©2007, Crawlability, Inc.