Risk to Capital
Managing risk to capital is about deciding in advance how much of your total account you are willing to put at risk on a single trade.
Common Guidelines
- Many traders limit risk to 1–2% of account value per trade.
- This approach helps preserve capital during losing streaks.
Disclaimer: For educational purposes only. This is not investment advice. Trading involves risk.
More Risk Management Topics
Stop-Loss Orders
Trailing Stop-Loss
Stop-Limit Orders
Why Use a Stop?
Risk to Capital
Important Limitations
Risk Management Overview