Risk a Tolerable Account Portion Per Trade Position

 

To manage your invested fund well, you have to decide before the opening of any position how much of the money you can afford to lose in case the trade goes negative from your projection. For instance, you may decide that for every opened position your risked money will be 3%, 5% or 10% of the total fund, by so doing you have known prior to the execution of the trade the highest amount that can ever go out of your money on that single trading position, by so doing you have even taken away emotion.

     

    I am agree with you "Samuel23". A trader should decide his risk percent before open a trade. Risk can be saved on weekly or monthly basis as well. I prefer only 1% - 3% risk of total deposit. However for each individual trade it vary according to market condition.

     

    Thanks Paul, i even agree with you concerning you level of risk that you took to trade Forex. This is why we always said that Risk Management is important in the daily Forex Industry.