Kardec Trader explains the 2% rule: never risk more than 2% of your trading account on a single trade. Keep position sizes small and consistent for months, even when you're winning. A $500 loss that's 2 to 3 times your average means you broke the rule.
2%
Identify a solid risk management plan within your trading. I would try to stay in the 2% rule. Do not try to risk more than 2% of your trading account. Keep that consistent for a couple of months. No matter how well you do, no matter how excited you get in the early months, keep that very small. And as you keep that small, keep it small and keep it consistent so you don't get the element of surprise of seeing a five or six hundred dollar loss or something. That's two to three times your average loss. Pop.
