Risk a fixed fraction, not a fixed lot
Risking a consistent percentage of equity per trade means position size scales down automatically during drawdowns and up during growth. It is the simplest mechanism for surviving a losing streak.
Place stops where the idea is wrong
A stop-loss placed at a level that invalidates the trade thesis is informative. A stop placed at a comfortable cash figure is arbitrary and tends to be hit by ordinary noise.
Watch correlation across open positions
Several currency positions sharing the same underlying exposure behave like one larger position. Summing exposure by currency, not by ticket, gives a truer picture of account risk.
Educational content only. Nothing here is a recommendation to enter any particular position or use any particular level of leverage.
Frequently asked questions
What percentage should I risk per trade?
There is no universally correct figure. Many educational frameworks discuss small fractions of equity, and the appropriate level depends on strategy, drawdown tolerance and personal circumstances.
Pips School Editorial
The Pips School editorial team writes independent educational material on forex markets, broker selection and risk management.
Editorial principles
