PipTronic |
What percentage of my funds should I risk when trading?
Monday, 14th September 2009
What is a safe percentage of funds to risk when trading forex?
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Lea |
This is a very good and important question. In fact, the % at risk per trade in regards to the total of available equity is a critical money management plan any trader should be equipped before going into a trade. They say " plan Your Trade" and "Trade Your Plan". This expression does not presuppose entries, stops and exits. It hugely involves appropriate money management at all times.
You percentage of risk should not involve more that 3% per trade taken intraday along predominant longer term trend. In fact, i use what i call 1-2-3-rule : 1% per position ( carry, swing) trade, 2% intraday catching reversals and 3% intraday trading along predominant trend
Trade what You see, not what you think!
Monday, 14th September 2009
Sources:
Www.fxuniversity.org |
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