How Much Should You Risk Per Trade?

Ask professional traders their number-one rule and most say the same thing: don't blow up. The simplest way to not blow up is to risk only a small, fixed fraction of your account on any single trade.

The 1–2% rule

Risk 1% (conservative) to 2% (aggressive) of your account per trade. On a $1,000 account that's $10–$20 at risk — the amount you lose if your stop is hit. Not your position size; your risk.

Why fixed-fractional risk works

At 1% risk, it takes a long, unlucky streak to do real damage — and because risk scales with your balance, you automatically bet less after losses and more after wins. It turns a series of unknown outcomes into a survivable process.

Turning risk into position size

Position size = risk amount ÷ distance to your stop. Risk $10 with a stop $100 away and you trade 0.1 units. Our free position-size calculator does this instantly, and Signal Bench sizes every signal to your account automatically.