This article has been translated from English to Gen Z Slang.
How much 💸 should you risk per trade?
Big brain question right there. 🤔
Keep it chill, only risk like 2% per trade. ✌️
Tbh, 2% might still be hefty if you’re a forex trading noob.
Check this 🔍 super important pic that shows how much it matters if you’re risking small vs big %. Talk life saver! 💀💼
Risking 2% vs. 10% Per Trade
| Trade # | Total Account | 2% risk on each trade | Trade # | Total Account | 10% risk on each trade |
|---|---|---|---|---|---|
| 1 | $20,000 | $400 | 1 | $20,000 | $2,000 |
| 2 | $19,600 | $392 | 2 | $18,000 | $1,800 |
| 3 | $19,208 | $384 | 3 | $16,200 | $1,620 |
| 4 | $18,824 | $376 | 4 | $14,580 | $1,458 |
| 5 | $18,447 | $369 | 5 | $13,122 | $1,312 |
| 6 | $18,078 | $362 | 6 | $11,810 | $1,181 |
| 7 | $17,717 | $354 | 7 | $10,629 | $1,063 |
| 8 | $17,363 | $347 | 8 | $9,566 | $957 |
| 9 | $17,015 | $340 | 9 | $8,609 | $861 |
| 10 | $16,675 | $333 | 10 | $7,748 | $775 |
| 11 | $16,341 | $327 | 11 | $6,974 | $697 |
| 12 | $16,015 | $320 | 12 | $6,276 | $628 |
| 13 | $15,694 | $314 | 13 | $5,649 | $565 |
| 14 | $15,380 | $308 | 14 | $5,084 | $508 |
| 15 | $15,073 | $301 | 15 | $4,575 | $458 |
| 16 | $14,771 | $295 | 16 | $4,118 | $412 |
| 17 | $14,476 | $290 | 17 | $3,706 | $371 |
| 18 | $14,186 | $284 | 18 | $3,335 | $334 |
| 19 | $13,903 | $278 | 19 | $3,002 | $300 |
Dude, did you see how risking 2% can save your bacon vs. risking a saucy 10%? 🌶️🔥
If you hit a losing streak (aye, it happens) and drop 18 trades straight down, you'd tumble from $20,000 to a meager $3,002 with that high-key 10% risk. Ouch! 🙈You'd shed over 85% of your moolah, fam! 💸
Stick to that 2% and you're keeping $13,903 in the bank, just a 30% dip. Not too shabby, huh? 😎
Last thing you want is to tank 19 trades in a row. But even on a 5 trade blunder, peep the difference, fam. 🤓
With 2% risk, you’re still chilling at $18,447. Cool beans. 🤑
But take that 10% route and you're left hustling with just $13,122. That’s less than what you’d keep with 2% across all 19 trades! 😤
Bottom line, fam: set those risk management rules right, so when the market throws shade—like drawdown periods—you come out flexing with enough coin to play the next round. 💪Can you picture losing 85% of your stash?!! 😱
You’d need a mind-bending 566% gain just to break even. No cap. 😵
Trust the process, avoid those messy positions at all costs. 💯
“What Do I Have to Do to Get Back to Breakeven?”
Let’s peep a table that spills the tea on the gains needed to beat the dreaded loss percentage and get back on track. 📈🧐
| Loss of Capital | % Required to get back to breakeven |
|---|---|
| 10% | 11% |
| 20% | 25% |
| 30% | 43% |
| 40% | 67% |
| 50% | 100% |
| 60% | 150% |
| 70% | 233% |
| 80% | 400% |
| 90% | 900% |
You see that? The deeper you dive into loss, the crazier the climb to get back in the game. 😵💫
Just one more reason to throw down a PROTECT spell over your stack. 🙏✨
Not sure how well (or poorly) your trade went?
Hit up our Gain & Loss Percentage Calculator to scope what % of your bag you’ve won or kissed goodbye. 📊
Your balance glow-up to breakeven is in there, too. 📈🌈
By now, we hope you've got the memo: place tiny bets to handle the L's without breaking a sweat. 🧢💦
Keep the mindset of a master, not a rookie gambler. Be the house, not the one losing chips. 🎰🏠
