Is Risking From 5%to 20% of your trading account Reasonable?

[Timothy2077]

I wanna try trading with a small trading account but I don't want to take the rest of my life building it

[Screenwriter]

You have a long life ahead of you to do such trading. If you have say $1,000 , risking 5-10% of it might be reasonable. Any more than that and you're damaging too much of your base.

Get professional advice of how to spread out your risk. Save regularly and have liquid assets, and put a percentage of your extra cash aside for trading. The advice is to save three months of salary before you can invest elsewhere. That's your emergency fund.

After that, get a financial advisor and read up on what you'd like to invest in.

[Timothy2077]

I will be sure to take note of that

[RavVid]

How much can you afford to lose at this point? That is an absolute $'s question not a percentage question. What risk will you accept?

I applaud your wanting to get ahead but if the amount causes you to lose sleep it is too much. Think you can expect to have losses initially.

Warren Buffet says he invests and won't speculate/gamble. I'm more on the speculate/gamble end of the spectrum. Buffet won't buy gold, silver or bitcoin but I will for higher gains. You need to buy in at the right time of course.

Recently I learnt I should sell well before the peak and know what gains are goodness for me. I could have made more in 2025 had I taken that approach.

I like a technical approach. For what it is worth I think the market will turn very bearish in the near turn.

Don't think I know what I am doing by the way.

[Effably]

My simplest advice is to not risk anything and leverage time to work for you with safe bets. Not very fun, but so few do it that it will change your life eventually.

As for the risky stuff? We can't say. I would normally advice to go with Poker rules. Anything above 1% of your bank is irresponsible. Of course, it also entirely depends on your information.

Most of the time you do not have an amazing lead but rather try to repeatedly pick above 50% options and let math work for you.

In reality stocks is mostly just trading over time. Vast majority doing short term trades lose money absent insider trading and other illegal stuff. Which is common.

[Kelley1]

Don't ever take trading risks. Losing is automatic and guaranteed. Winning is almost impossible. It is not like flipping a coin. Flip a coin and you win half the time. Take a risk in trading, regardless of the direction and you lose 80% of the time. Find something to invest in but seldom trade.

[AI Opinion]

Risking 5% to 20% of your trading account on a single trade can be quite aggressive, especially for beginners. It's essential to find a balance between risk and potential reward. Professional traders often risk 1-2% per trade, focusing on consistency and long-term growth. Instead of risking a large percentage of your account, consider developing a solid trading strategy and educating yourself on risk management. Building a strong foundation may take time, but it increases the likelihood of long-term success in trading.

[MereAnarchy]

This is like asking 'Should I drive 75 mph on every road I find? Or should it be 25?'.

Work out how much you can afford to lose. Then choose a fraction of that to trade with. People lose trades when they are forced to close positions because they can't afford to keep them open.

[exitseven]

the general rule of thumb is that if you cannot afford to lose the money you should not take a chance.

[Timothy2077]

Very true

[Abbycado]

Risks are risks. That sounds like a lot. I don’t know much about trading though.

[Timothy2077]

Yeah, it's a lot indeed

[888theGreat]

I mostly only use Physical Assets like Metals. Stocks can be frozen by the Gov'r

[Timothy2077]

Am definitely open to that

[qwerty2469]

Lol. That's no way to make money ha ha ha ha. Never risk anything. Invests in superior investments and never in vest in anything not guaranteed