However, what usually happens is traders lose (for a number of reasons discussed in my other articles, check out this lesson on why traders fail for more), and then they are stuck trading smaller and smaller position sizes due to the 2% rule (the 2% means less money risked as you lose), making it harder just to get back to their starting amount, let alone actually make money! Measuring based on “R” or Fixed $ Risk – A trader predetermines how much money they are comfortable with potentially losing per trade and risks that same amount on every trade until they decide to change that dollar amount. The fixed $ risk model makes sense for professional traders who want to derive a real income from their trading; it’s how I trade and it’s how many others I know trade.