Lesson 1 of 104:054 Sources
The golden rule: how much to risk per trade
Recorded. Publishing soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
Your risk on a trade is what you lose if your stop loss is hit — not your deposit and not the margin. Measure it as a percentage of your current balance.
- Many traders risk 1–2% per trade; CME Group notes the exact number is a personal choice and new traders should start modestly.
- Five 2% losses leave about $904 of $1,000; five 20% losses leave about $328.
- A 50% loss needs a 100% gain to recover.
- Don't raise risk after a loss or a winning streak; set a daily loss limit.
Quick check
Three questions. Pick an answer to see why.
1.What does 'risk per trade' mean?
2.On a $1,000 account, what is the maximum loss per trade at 2% risk?
3.If you lose 50% of your account, what gain do you need to get back to the start?
Sources
Every fact in this lesson is backed by the sources below.
- 1.CME Group Education — The 2% RuleThe 2% rule; number is arbitrary/personal; $ examples per account size
- 2.CME Group Education — Controlling RiskFixed-% rule shrinks position after losses; gain needed to recover (20%→25%, 50%→100%, 90%→900%)
- 3.CME Group Education — Proper Position SizeNew traders best off risking a modest 1%–3% per trade
- 4.CME Group Education — Risk Management and Your Trade PlanDefine maximum trade loss and maximum day loss in the trade plan
Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.