Calculate your 1% risk per Trading Account to identify 3:1 R:R

Hello traders:

Lately there are more and more newcomers in my community,
and some are not quite familiar with risk management, especially when it comes to calculating R:R based on 1% of your account size.

Risking 1%, simply means risking 1% of your total account size.

For example, $1000 account size, is $10 per risk at 1% of trading account
$100,000 account size, is $1,000 per risk at 1% of trading account

The goal is to forecast and plan out an entry that will potentially give you at least 3:1 RR per trade or more.

Meaning by risking 1%, $1000 of your $100,000 account, you should look to achieve a $3,000 profit or more, hence giving you 3:1 RR, or +3% profit.

There are many websites that help you to calculate your R:R and position size in relation to your account.
Utilise them to calculate exactly your LOT size position in relation to your SL amount so you have a proper risk management in place.

Any questions, comments or feedback welcome to let me know.


Thank you

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