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  • Writer's pictureVasily Trader

Are You Taking the Right Risks in Trading? Best RISK Per Trade Explained


What portion of your equity should you risk for your trading positions?

In the today's article, I will reveal the types of risks related to your position sizing.


Quick note: your risk per trade will be defined by the distance from your entry point to stop loss in pips and the lot size.


🟢Risking 1-2% of your trading account per trade will be considered a low risk.

With such a risk, one can expect low returns but a high level of safety of the total equity.

Such a risk is optimal for conservative and newbie traders.


With limited account drawdowns, one will remain psychologically stable during the negative trading periods.

🟡2-5% risk per trade is a medium risk. With such a risk, one can expect medium returns but a moderate level of safety of the total equity.

Such a risk is suitable for experienced traders who are able to take losses and psychologically resilient to big drawdowns and losing streaks.

🔴5%+ risk per trade is a high risk.

With such a risk, one can expect high returns but a low level of safety of the total equity.


Such a risk is appropriate for rare, "5-star" trading opportunities where all stars align and one is extremely confident in the positive outcome.


That winner alone can bring substantial profits, while just 2 losing trades in a row will burn 10% of the entire capital.

🛑15%+ risk per trade is considered to be a stupid risk.

With such a risk, one can blow the entire trading account with 4-5 trades losing streak.


Taking into consideration the fact that 100% trading setups does not exist, such a risk is too high to be taken.


The problem is that most of the traders does not measure the % risk per trade and use the fixed lot.

Never make such a mistake and plan your risks according to the scale that I shared with you.

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