I risk 1% of my capital to win 4%. If I lose, the stop loss will protect my capital and I can continue trading at least 99 times more!
That's where most traders fail: getting out when they are wrong and risking too much to win too little.
Don't do that!
Use a stop loss and aim high!
What is a stop loss? http://www.tradinggraphs.com/2012/10/16/trailing-stop-loss-orders-online-trading/
Set a generous Risk/Reward ratio for each of your trades and you'll do fine.
Risking 1% or less is also strongly recommended as you mention. Yet, upon confirming the strategy's profitability in an adequate sample using "flat stakes", traders should implement half-kelly to increase their capital's rate of growth.