Why do traders recommend risking only 2% per trade?

[pravi]

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?

If you are a trader you will know the answer for sure. Sometime market changes by a great margin rapidly. Such a situation can give you a margin all of a sudden from no where. And also there is a chance that the market will bounce back all of a sudden. So if we trade with 2% we are risking only a small portion of the deposit and we will be able to make good profit by trading in the reverse order.

[bestlooser]

I am ready to risk even more than 2% because for me forex is still safe enough for me and I can even take more risk but not total risk just need to control and make some calculations that how much risk can be taken out there. I just take risk that I can afford and I am confident of getting away with that risk.

[nurhidayah]

even with the risk of 2% I still use a stop loss. because of my traumatic experience several times a margin call. because without a stop loss, even if only using 2%, we can still have a margin call

margin call is actually very painful, so that we also have to be careful in carrying out some strategies that we can indeed have to adjust to some of the transactions that can make our trading to be safe and comfortable, this is what we should actually pay attention to the carefully and we adjust the pair that is quite safe and away from the margin call

[lights]

I agree with your opinion, because by using a volume of 2%, the margin we will be able to withstand huge losses, so without the use of stop loss account we would be very safe.

even with the risk of 2% I still use a stop loss. because of my traumatic experience several times a margin call. because without a stop loss, even if only using 2%, we can still have a margin call

[bdboy]

Its depends on your money management. But many broker say its safe to loss 2% of your deposit amount. It is less risky. If u take more risk u can more gain also. but 2% is recommended by many successful brokers.

[younesjoe]

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?

yes you keep risk in 2% OR 5% why because your money is 100% and every position you risk with 2% so to risk your 100% money you should make 50 positions 50*2% egal 100% . in this 50 positions , if you are a good trader you think that you can loss 25 positions , for me i can loss in 15 positions and gain in 35 postion you have a profit

[mastri296]

well, since 2% is safe for our trading. because by using 2% as a risk, we only lose a maximum of 2% of our capital if we are wrong position and experience loss. if we use more than 2%, then the risk is also more than 2%

I agree with your opinion, because by using a volume of 2%, the margin we will be able to withstand huge losses, so without the use of stop loss account we would be very safe.

[Ronak]

only 2% risk of equity is safe trading....but i usually trade on the basis of my analysis and my condfidence..and also i take more risk with low equity because of my greeed

[tarun2305]

kyuki agar aap naye hain aur aapke pas jyada capital anahi hai to jyada risk lene se aapki margin call bahut jaldi aa jayegi,,,isliye risk pers\centage jir\tna kam hoga utna acha hoga aapke liye

[kaji]

When using little part of your capital you are left with major portion of capital and even if you used risked money you need not worry much as you can easy cover up that amount in your future trades but using bigger portion on a trade may be risky as then you can lose your capital making it difficult to trade in future.

indeed we have the ability to trade in accordance with our capital so that we do not really feel depressed in the trade. because if we trade our capital exceeds the capabilities we will not be able to feel calm and comfortable ....