Why do traders recommend risking only 2% per trade?

[RKumar]

The idea is that if you only risk a small amount on the trade you should live long enough in the game to learn and get confident in what you are doing. You have to be comfortable with the amount that you risk.

[weeklyscalpertrader]

Asal ma har trader chahta ha ke wo forex business ma kam se kam loss ke sath market se big earning kar sakay is liye har trader apni total trades par 2 se 5% tak hi risk lena pasand karta ha ku ke is se zayda risk lena bohat dangerous ha and is taran hum kabhi b apnay loss ko recover nahi kar sakein gay. Agar hum kam risk ke sath trade kartay han tu kam loss ko bari asani ke sath market ma recover kar saktay han.

[Hamza aziz]

I think that is the much much risk. In forex you have to maximize your profits and minimize losses and don't try to take more risk. It's true that there is more profits if there is more risk but 2% risk is good as a beginners. If you are expert than you can take more risk.

[Fahad551]

Is business me har traders apni planning keh according kam karta hain or ye onki management hoti he our G han ap is business ko as full time business bhi kar sakty hain jaisa keh ye business online business hai ham is business ko jaha chahey jis waqt chahe kar sakty hain our ye business ham unlimited money earning opportunity bhi deta hai iske ilawa ye business week me 5 din open rehta he so ap jab marzi kam kar sakty hain. As a full time.

[AliZafar]

#4545
These all affect the trading mentality you, when you have a major disadvantage. (At least more than 10% balance) then you will be affected mentally, this impact on the decision to trade the next, usually we will be more cautious or even more aggressive, and therefore 2% is the limit of tolerance for our losses, accourding to me trader would like to take less risk and less profit that is why they prefer to take less risk and less profit, that is really good for the trader becasue if they wanst to make big profit then they have to invest big amount other wise less equity can not fight for long time.

[cadamkhan]

Basically my friend forex is a high risky trading business and taking more risk than 2% per trade means high risk involved in trading. We have to maintain a money management rules in trading and without proper money management we can not get success here. yes dear ager ham money managemnt say trade ni karty han to kafi risk involved hota h ahamri trade mian so is lay hamn money managemant say trade ko dakh kar apna risk and reward ko set karn chayy and yay sabi chzan hamri managemant main hoti h atabi ham easy trade kar ksty han and yay around 50% involved hota ha

[natsir]

i agreed with you because in this forex trading business you gain profit and loss mean that 10% profit and 10% loss in it and then you make better efforts when you get information more than more about trading and then you start forex trading business... more you risk the more you earn.loss is the part of the game and if you want to avoid but some time due to high risk heavy loss and thats not good for your capital because of the high level of risks that exists in Forex that makes many top traders

[kesempatan]

These all affect the trading mentality you, when you have a major disadvantage. (At least more than 10% balance) then you will be affected mentally, this impact on the decision to trade the next, usually we will be more cautious or even more aggressive, and therefore 2% is the limit of tolerance for our losses, accourding to me trader would like to take less risk and less profit that is why they prefer to take less risk and less profit, that is really good for the trader becasue if they wanst to make big profit then they have to invest big amount other wise less equity can not fight for long time.

[kede]

can get the doalr aswell 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. The forex is very easy and most earning opportunity to doing this business. When a trader start this business then they will need to take some risk . The forex have lot to earn money making way which they have to doing great earning opportunity and careful doing and earning money.

[bangjali]

the amount of risk in the forex business vary trader to trader. the successful traders in the forex market can reduce their risk because they use several techniques for reducing their risk. we should not take higher risk. higher risk can make our capital empty. for many reasons we should risk only small part of our capital in the forex market because the less we have on stake the less we will be stressful and we will be able to make better decision but the more we have on stake the more nervous we are and the more the mistakes will will make.