Calculate your 1% risk per Trading Account to identify 3:1 R:R

Hello traders:

Lately there are more and more newcomers in my community,
and some are not quite familiar with risk management, especially when it comes to calculating R:R based on 1% of your account size.

Risking 1%, simply means risking 1% of your total account size.

For example, $1000 account size, is $10 per risk at 1% of trading account
$100,000 account size, is $1,000 per risk at 1% of trading account

The goal is to forecast and plan out an entry that will potentially give you at least 3:1 RR per trade or more.

Meaning by risking 1%, $1000 of your $100,000 account, you should look to achieve a $3,000 profit or more, hence giving you 3:1 RR, or +3% profit.

There are many websites that help you to calculate your R:R and position size in relation to your account.
Utilise them to calculate exactly your LOT size position in relation to your SL amount so you have a proper risk management in place.

Any questions, comments or feedback welcome to let me know.



Thank you

Risk Management: When/How to move SL to BE and to profit in a running trade ?

Risk Management: How to filter trading opportunities if multiple setups are presenting entries:

Risk Management: 3 different entries on how to enter the impulsive phrase of price action

Risk Management: What Is Capital Partitioning ? How will it help you as a trader ?

Risk Management 101

Risk Management: How to set a Take Profit (TP) for your trades

Risk Management: How to Enter and set SL and TP for an impulse move in the market

Risk Management: How to scale in the impulsive phrase of the market condition?

Risk Management: Combine everything you learn to prevent blowing a trading account