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The 2% Rule: Risk Management That Keeps You in the Game

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The 2% Rule: Risk Management That Keeps You in the Game

The 2% Rule: Risk Management That Keeps You in the Game

Admin

Risk

2 weeks ago

Leverage is a tool, not a strategy. The professionals who survive for decades share one habit: they risk a tiny, fixed percentage of their account on every trade.

Why 2%?

If you risk 2% per trade, ten losses in a row still leaves you with over 80% of your capital — and a clear mind to recover. Risk 20% and just three losses can end your journey.

Position sizing

Decide your stop-loss distance first, then calculate your lot size so that being stopped out costs no more than 2% of your balance.

Protect the process

A stop-loss is not a sign of weakness; it is the price of staying in the market long enough to win. Trade small, stay consistent, and let discipline compound.