How to use 2% trading rule in money management

This is a video about trading Forex. Focusing on the 2% rule. Even if trading conditions are perfect, you should not risk to much all in one trade. Use stop loss so that you limit yourself to the amount of money that you can lose in one day. By following this 2% rule, you have a better chance of making money on your investments and limiting your risk tolerance so that you do not lose the majority of your investment.

Key Takeaways:

  • Never risk more that 2% of your investment portfolio in one day
  • Even if the situation seems perfect, you cannot control the entire market
  • Circumstances change, and a higher overall profit is more likely if you maintain safety with your investments

“”Even as trading conditions are 100% correct or perfect, don’t risk too much on a single trade.””