Forum transfer: Submitted by Smiling trader on October 31, 2007 - 13:08.That very much depends on greed factor
if you have one.
I don't believe that greedy people have any ability to balance their nature. They are also proved to be bad investors.
There is also a fine line between how much to risk. Suppose you hold an 100,000 account, then to see your balance grow you don't need much, 2% is just enough, and this is what other traders suggest doing.
But, if you take a small investor with miniaccount and deposit of 1000 dollars or less, risking 2% would be unreasonable: you won't be able to generate enough return to call it a profit and justify the time spend on trading at all...
So, investors with miniaccounts need to risk more if they want to profit or can risk less if they just want to be in "action".
Smiling trader