It´s often said that risk management represents 30-40% of success in a trading scheme. We absolutely agree with this statement. In this post we want to give you some rule of thumb limits in your operative:
- Risk per trade - 1%,
- Risk per day - 4%,
- Risk per week - 8%,
- Risk per month - 10%
When a new month begins we calculate all this figures and we stick to them rigorously. For instance if our initial capital sums 250.000 GBP, our risks are 2.500 maximum loss per trade (it depends on the stop loss allocation), 10.000 per day, 20.000 per week and 25.000 per month.
