How much can be risked per trade?

<p id="isPasted">A good starting point for risk per trade is 1% or less of your total trading capital. Some traders prefer to use 2% as a maximum, but anything above 5% is generally considered high risk. Ultimately, the appropriate risk per trade depends on individual risk tolerance and trading style.&nbsp;</p><p>A more detailed breakdown here:</p><p>1% Rule:</p><p>This is a common guideline suggesting you should not risk more than 1% of your total capital on a single trade. For example, if you have a $10,000 account, your maximum risk per trade should be $100.&nbsp;</p><p>2% Rule:</p><p>Some traders prefer a slightly higher risk, using a maximum of 2% per trade. This means that with a $10,000 account, the maximum risk would be $200 per trade.&nbsp;</p><p>Risk Tolerance:</p><p>Individual risk tolerance varies. Some traders are comfortable with higher risk levels, while others prefer to keep their risk very low.&nbsp;</p><p>Trading Style:</p><p>Day traders and swing traders may have different risk tolerance levels than long-term investors.&nbsp;</p><p>Risk/Reward Ratio:</p><p>Consider the risk/reward ratio of each trade. A good ratio is 1:3 or better, meaning for every $1 risked, you aim to gain $3.&nbsp;</p><p>Time Horizon:</p><p>The amount of time you plan to hold a trade can also influence your risk per trade. Longer-term trades might allow for slightly higher risk, while short-term trades may require tighter risk management.&nbsp;</p>