What is risk per trade?

Many disciplined traders keep risk per trade between 0.5% and 2% of the account. At 1%, ten losses in a row cost about 10% of the account, which is survivable. At 10% per trade, the same streak can end the account.

Risk per trade is set before you look at the setup, not after you get excited about it. It is often written as 1R, so a trade that makes three times the amount risked is a 3R win.

It pairs with position sizing: risk per trade is the budget, position size is how you spend it.