How much should you risk on one trade?
Majed ·
The one-percent rule, stop losses and why position size matters more than entries.
Ask a new trader about their last trade and they will tell you where they entered. Ask how much they risked and many will not know. That second number decides whether you survive.
A simple rule is to risk no more than one percent of your account on any single trade. With 50,000 dirhams, that is 500 dirhams. Ten losing trades in a row, which happens to every trader, would cost you ten percent, not the whole account.
The stop loss turns that rule into a number. Decide where your idea is wrong, place the stop there, and then calculate the position size so that hitting it costs exactly your one percent. Never move the stop further away once you are in the trade.
Watch leverage too. High leverage does not change your risk rule; it only makes it easier to break. And if you use a swap-free account, check the broker's fees for holding positions over several days.
Keep a simple journal of every trade: the setup, the risk and the result. After fifty trades it will tell you more about your strategy than any course.