Question
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What percent of money should i risk on trading?
6 Answers
<p id="isPasted">Investors impose the 2% rule on their trading activities in order to stay within predetermined risk management parameters. With the 2% rule, an investor with a $100,000 trading account risks no more than $2,000–or 2% of the value of the account–on a particular investment.</p><p>According to the 2% rule, an investor should not risk more than 2% of their available capital on any single trade. </p><p>Investors must first determine their available capital, taking into account any future fees or commissions resulting from trading.</p><p>As market conditions change, stop-loss orders can be used to maintain the 2% rule risk threshold.</p>
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<p id="isPasted">As a beginner, you should invest really less amount in day trading. As day trading is very risky and you can lose your hard-earned money easily due to intraday fluctuation. I would recommend you invest not more than 10% of your capital in day trading.</p><p>You can take something from 5–10% of your capital for day trading.</p><p>Some tips:</p><ol style="list-style-type: decimal;margin-left:50px;"><li>Don't be emotional while taking trades.</li><li>Do not take revenge trades</li><li>Accept losses.</li><li>Be disciplined while taking losses.</li></ol><p>Keep these things in mind while taking trades and you will be successful in the long run.</p>
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<p>It is generally not advisable to risk more than 1-2% of your capital on a single trade in the stock market. This means that if you have $100,000 in your trading account, you should not risk more than $1,000-$2,000 on a single trade. The exact amount of risk that is appropriate for you will depend on your risk tolerance and your overall trading plan. It is important to carefully consider these factors and to develop a risk management strategy that is appropriate for your situation.</p>
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<p id="isPasted">There is no one-size-fits-all answer to this question as the amount of money you should risk on trading depends on various factors, such as your risk tolerance, trading strategy, investment goals, and personal financial situation.</p><p>As a general rule, it's recommended that you should never risk more than 1-2% of your trading account balance on any single trade. This means that if you have a $10,000 trading account, you should risk no more than $100-$200 per trade. This helps to minimize your losses if the trade doesn't go as expected.</p><p>However, it's important to note that the amount you risk …</p>
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<p id="isPasted">Practically, you should trade positions as small as technically possible until you can come to a historic-evidence-backed decision that's reflecting your very own performance and risk profile of your trades. The number of trades running in parallel matters here a lot, too.</p><p>There is, in my opinion, little sense in suggesting numbers. For some traders and their strategy, 2% per trade is really fine, for others, it's akin to a daily gamble between resorting to a job of flipping burgers or building up equity. It’s generally a good sign if trading feels boring.</p>
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