Don’t Measure Your Profits in Percentages or Pips
['Nial Fuller']
Learn To Trade The Market
Risking say 2% of your account on each position you trade might be a good idea for diversified stock portfolios or for large hedge funds due to the large number of assets they have under management at any one time, but for the private prop or retail trader who typically only trades 1 or 2 positions at a time, this percent risk rule is simply not the best way to manage your trading account. You would never put all your trading capital in one Forex account; I personally trade large size, but I don’t ever keep more than $50,000 in my trading account, because I simply don’t need more money than that in my account due to leverage.