How Much to Risk per Trade and How to Calculate that Risk?

Podcast:

#405: How Much to Risk per Trade and How to Calculate that Risk?

In this video:
00:29 – Email from a podcast listener
00:59 – How do you calculate your risk amount
01:20 – Download my MT4/MT5 Lot Size Calculator 
01:55 – The logic behind lot sizing 02:38 – Lot size examples
04:58 – How to use the Lot Size Calculator trading script
05:27 – Know the stop loss size of your trade to calculate your lot size needed
06:29 – Email me any topics you’d like me to discuss on future videos and podcasts

How much should you risk per trade? And also how do you calculate that risk? Let’s talk about that and more right now.

Hi Forex traders, it is Andrew Mitchem here at The Forex Trading Coach with video and podcast number 405.

Email from a podcast listener

I’ve received an email this week from a trader called Diop, and Diop by the way you said you’ve started listening to all my podcasts and you’re currently up to number 202. You’re about half way; this is number 405. So well done for listening through to those. You said you’re really enjoying them and you understand the concept of… You said you’ve been looking online and you should risk somewhere between 1-5% of your account per trade. You also know that in my case I suggest that’s still way too high, and you should actually be half of that. You should actually be half of 1% risk per trade.

How do you calculate your risk amount

But your question is how do you calculate that and what do you do with your trading in order to make that happen? And to ensure that you have controlled risk but also some of those bigger stop-loss trades aren’t going to wipe out your gains.

I can see where you’re coming from, but also I think there’s a slight misunderstanding there.

Download my MT4/MT5 Lot Size Calculator 

I’ve given you the very quick answer, the quick answer is to d