First post here: Balancing risk and opportunity in tight range markets
Hey everyone, just joining the forum. I've been actively trading equities and a bit of forex for about two years now, mostly self-taught, absorbing everything I can. One thing I consistently grapple with, especially in these choppier, less directional markets we've seen lately, is how to effectively size positions without getting chopped up. I try to adhere to a strict 1% risk per trade, but sometimes the price action is so tight that placing a stop at a technically sound level makes the risk/reward completely unviable at that 1% allocation.
Do you guys ever adjust your absolute risk percentage lower in those scenarios, or do you simply pass on those setups entirely if the risk/reward doesn't meet your criteria at your standard allocation? I'm curious how more seasoned traders navigate that dilemma.