How much does the average FX trader risk per trade in %?

Dec 02, 2015 at 08:17
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Biedrs kopš   6 ieraksti
Dec 02, 2015 at 08:17
Just curious about other traders out there. How much do you guys trade with? People tout the 1-2% rule but is this really realistic? Our portfolio generally risks about 0.5% each trade, sometimes more sometimes less, depending on situations and very subjective.

Do most traders follow the 2% rule?
Biedrs kopš   19 ieraksti
Dec 14, 2015 at 07:36
Managing risk in the forex is a very important feature of a successful trader. Risk management is almost as important as technical analysis, when I employ the best of strategies and I can't manage my positions wisely as regards my margin, I might not reap the pips deserving of my technical analysis and still possibly get a margin call. What I do in my trade is risk 2% of my margin in every trade with preference to the EURUSD. Maybe before I open a position, I kind of study my charts and possibly make use of my moving averages to search for support and resistance levels. Those point of resistances tell me where the prices has not gone above for some time now and the support where it has not gone below for some time now. So what I have it simply do is buy when price dips and tests the moving average or possibly sell and close my position when the price rises and then touches the moving average. That is for every time the price would approached the moving average (say I make use of the 50 EMA) and tested it, it has well acted now as resistance and then price bounced back down. There are other instances where I put two moving averages say on my 15 minute chart and buy or sell only when price is between the middle of the space between the two moving averages.
 This area is known as zone, you can make good profits if you learn this system of moving averages well. https://www.profiforex.com/education/professional/ , that is where I learnt and mastered the moving average system with good risk management which has made me a successful trader.
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