Why do traders recommend risking only 2% per trade?

[monjurbr]

On every website, forum and all the friends of mine on face book that are trading from quite some time always say that one must trade with risking only 2% of his capital. Why is it so? Why not 5% or 10%, there are traders that trade risking more than 2% of their account size but my question is why this number is so famous and advisable?

It is recommended to all traders to take maximum2% risk. Because if we take more risk it would be more harmful. But some traders take more risk and then sometimes then gain more profit and sometimes they bear high loss.

[hmidaanas]

in the next session and give tolerance to subsequent loss even though all the people do not want to lose but who can ensure profits, forex trading there is nothing definite.

[Ladenboys]

Actually its a general formula.If you have more money you can take more risk.But if you are a small trader then its good not to take more than 10% risk.cause more than that should become a high a risk.

[queen1234]

Me too also i don't use to take more risks with forex , i prefer to work with aproper money and risk management so as to protect my capital and limit amount of my loss

[tom11]

I agree with your view the more we want to gain the more risk we need to take. 2% in a day is quite reasonable profit we can expect on a winning day and for that we need not use most of available margin but a small portion of it will be sufficient and then our account can bear major volatility and we can wait to close trade in profit.thanks............

[yogesh]

I think that '' no risk no gain''. so the more you take risk the more you can make profit. but if you fail to make profit in high risk, so we can trade with little to consistently generate profits without a high risk. Small risks are good enough for all traders since it protects their accounts from losses. Thanks.

It is right that bigger risk can bring bigger rewards but you should never forget that by ignoring money management you shall be deprived of the second chance and too big risk may wash up all the capital, while those lose smaller may trying again and recover their losses.

[ctgboy]

It all is produced by revenue direction piece. Revenue direction is crucial a natural part of Currency exchange health and wellbeing. Which means that associated risk direction at the same time necessary. Hardly any way of preventing the word.
People hope 2% associated risk v . 3% return. whenever an individual market require associated risk 10%. It's that will substantially. This implies become a affluent very swift. In reality unrealistic for starterst. We need capacity deal with. Brand-new worker come up with 10% or over associated risk. For any top multitude worker move out by just suffer a loss of. 10% associated risk lead to 10 market likely. Whenever most of market get suffer a loss of. The fact that that will substantially.
1% associated risk a sufficient amount of together with 2% could possibly top.

[junaidi99]

I think putting the risk of 2% of the balance is reasonable, it is ideal. then we set the number of take pofitnya. we must have the courage to put at risk, every business must have the courage to risk. do not use the same SL did not want to risk. is dangerous to the balance

[sourav744]

Once you have attained a good appreciation of the basics of trading, irrespective ... that can help you evaluate just how much you should wisely risk per trade. For example, many experts recommend that investors should master a simple ... For instance, if you were to risk just 2%, then you would lose only about 17% of your ........

[umaira]

Why do traders recommend risking only 2% per trade?
On every website, forum and all the friends of mine on face book that are trading from quite some time always say that one must trade with risking only 2% of his capital. Why is it so? Why not 5% or 10%, there are traders that trade risking more than 2% of their account size but my question is why this number is so famous and advisable?