The REAL Reasons for 2% Risk Management Trading Rule
The Duomo Initiative The Duomo Initiative
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 Published On Feb 9, 2021

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Traders know not to risk more than 2% on each trade but aren't given good enough reasons for this risk management rule. We'll explain the numbers, the psychology and more.

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TRADING RISK MANAGEMENT:
In this video, we discuss a common risk and money management rule that you should never risk more than 2% for each trade. Lots of traders follow this rule but it seems many don't know exactly why. The most common explanations fall short and just mention it's for capital protection, but we think there are deeper reasons. We'll take a look at the numbers side, the psychological aspects and the neurological aspects.


#Trading #RiskManagement #Risk

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