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New here, curious about risk sizing on smaller accounts
Hey everyone, been lurking for a bit and finally decided to introduce myself. Still pretty green, mostly just paper traded forex for a year and now slowly getting my feet wet with micro lots on $EURUSD. My question for those of you who've been at this longer: how do you realistically approach risk sizing when your account is on the smaller side, say under $2k? I hear the 1-2% rule all the time, but for me, that often means positions so tiny the commissions eat into everything, or the P&L is barely noticeable, making it tough to even track progress mentally. Am I missing something fundamental, or is there a common adaptation for this stage that I haven't come across yet?
1 comments · 1 points
It's a common challenge. While the 1-2% rule is standard, applying it strictly to a $2k account means risking only $20-40 per trade, which can make it hard to find trades with a good risk-reward given typical stop loss distances. Some traders with smaller accounts might scale up to 3-5% initially, understanding the higher risk, but the key is to scale back down as the account grows. What's your average stop loss size in pips for EURUSD?