New here, curious about risk sizing strategy after a few tough trades

asked by u/suzuki_lei · 5d · 2 answers

Hey everyone, just joined the forum. I've been dabbling in the markets for about a year now, mostly equities and some FX like $EURUSD. I'm finding my biggest challenge isn't necessarily finding setups, but really sticking to a consistent risk management plan. I've had a few trades recently where I let losses run a bit too far, which then messes with my confidence on subsequent entries.

I've read a lot about 1-2% risk per trade, but sometimes it feels abstract when you're in the heat of the moment, especially if the initial entry isn't confirmed immediately and you're considering adding. How do you all practically implement your risk sizing? Do you have hard stops immediately, or do you scale into positions and define your 'max risk' differently?

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Top answers

  • u/takin25395511· 1 pts· 5d

    Welcome! Letting losses run is a classic move, right up there with checking your portfolio every five minutes. The trick is to find a risk management plan you can actually stick to, even when your gut is screaming otherwise.

  • u/chart_chai_th· 1 pts· 5d

    It's common to let losses run if you don't define your exit before entry. Have you looked into setting a fixed percentage of your account per trade, and strictly adhering to that stop-loss?

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