How much risk do you have to take in each transaction?

What a great question!

But this amount may even be a little high.

Especially if you are a novice Forex trader.

The following is a good example of the difference between risking a small percentage of capital in each transaction and risking a high percentage.

## Risk 2. vs. 10% per transaction

Note the table above. The result of 19 trades with a loss in risk is calculated at 2% per trade and 10%. You see, there is a big difference between risking 2% of an account compared to risking 10% of an account in a trade!

If you happen to be in a losing streak and only lose 19 consecutive trades, and assuming a 10% risk per trade, with an initial capital of \$ 20,000, only \$ 3,002 will eventually remain in your account. .

You lost more than  85% of  your account!

If you risked only 2., you still had \$ 13,903 left in your account, which is only  30%  of your total account loss.

Of course, in the worst case, it is to lose 19 consecutive trades, but even if you lose only 5 consecutive trades, it is enough to pay attention to the difference between risk of 2% and 10%.

If you took a risk, you would still have \$ 18,447.

If you risked 10. you only had \$ 13,122. Even if you lost all 19 of your trades at a 2% risk, your balance would still be more than that.

The point of this statistic is that you need to adjust your risk management rules so that when you have a course, you still have enough capital to stay in the game.

Can you imagine losing 85% of your account? !!

You must earn 566% of the amount remaining in your account to be able to get back to the point!

Trust us, you should never be in such a situation.