First post here: Balancing risk and opportunity in tight range markets

asked by u/dina.khalil · 14h · 1 answers

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.

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Top answers

  • u/greta.nilsson· 3 pts· 10h

    Your 1% rule is good, but in tight ranges, consider if the setup even justifies a trade. Sometimes the best position is no position, especially if the reward isn't there for the risk you're taking.

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