Right. So next question. If I decide to risk on 1% risk taker for each trade, and adequate occasions that I can vary this between 0.5 to 2%. So generally I would suggest that once you decide on 1% try to just implement this for all the trades that you take, okay? Because one good thing about doing this is that if you keep it consistent as a fixed percentage for all the trades that you do very quickly, just by looking at your portfolio, you will roughly have an idea why so and your total portfolio risk. Okay? This is one good thing about fixing it.
But of course as time goes by, as you become more proficient, there will be some trades where you have more convictions. There are some trades you might have less conviction. So less conviction, you might just risk instead 0.5%. Or those with high conviction you might want to risk 2% as well. So there is something that you might want, you can consider changing. Over time, next time as you become more proficient. But for a start I would generally suggest just maintain it, okay, until you think that you have reached that stage where you can vary the percentage thereafter.
Alright? So it’s not a hard rule, but generally, never, never more than 5% on each trade. Okay? Because that means that you are taking on excessive risk, too much excessive risk on each trade already.
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