Trading guidelines, money management and position sizing
While every trader has varying appetites for risk, TECHFX TRADERS would like to share three key recommendations:
- Risk no more than 1% on any one trade. If I am trading a $10,000 account and I risk 1% on a trade it equates to $100.
- Trades should offer a 2:1 risk reward ratio. This means if you are willing to risk $200 you should be aiming to make $400 on the trade.
- We advise the use of stop loss orders on all trades/positions.