A lot of people ask me how they should manage their risk, here are some of my thoughts and suggestions.

Risk is Subjective and Personal

There is no "standard" risk.

Many say - risk no more than 1%. But that 1% can be $1 or $10,000.

The perception of Risk & Money is all in the mind and different traders will perceive different risks as "healthy".

So, how to determine the best risk?

Based on your Account Size, what are you comfortable with?

As a rule of thumb, don't go above 2% per trade.

Because if you get into a losing streak, it gets pretty bad.

Think both in terms of Money and Risk percentage.

Are you comfortable with 1% Risk?

Are you comfortable with the monetary value of the 1% Risk?

Tweak what you are uncomfortable with, until you find comfort with your risk.

Let me give you an example:

I have a $10,000 live account. 1% risk is $100 per trade.

However, at this stage, I am not comfortable

with losing $100 per trade, but I am fine with a 1% risk.

So, I decide to reduce my monetary amount

to $50 per trade, which is 0.50%.

This way, I feel calmer when executing and

taking Iosses.

I will slowly build my way to $100 risk per

trade.

Find your Comfort Risk

It's all a perception of Risk and Money.

Sometimes, you can be fine with the Risk %,

but then monetary value sounds too much.

Other times, you can be fine with the

Monetary value, but then the risk % is too high. Find the sweet spot between both.

Build your way from small to big.

Remember that risk and money are subjective matters so keep working in your mindset to improve your perception and start playing bigger.