Can you risk 10% per trade?

The rationale behind this recommendation is straightforward. By capping risk at 1%, traders minimize the potential impact of individual losses on their overall portfolio. This approach ensures that even in the event of multiple consecutive losses, the trader's capital remains intact.

While some traders may consider increasing their risk level, most agree that exceeding the 1% threshold is unwise. With a 2% risk per trade, for example, while the losses may still be manageable, the cumulative impact can become significant over time.

It's important to remember that even a small increase in risk can have a disproportionate impact on trading outcomes. A 10% risk per trade, as some suggest, significantly increases the potential for significant losses and could quickly erode a trader's capital.

BTCC, a leading UK-based cryptocurrency exchange, offers a range of services that cater to traders' diverse needs. Its comprehensive platform supports spot trading, futures contracts, and secure wallet solutions.

Cryptocurrency trading demands precision and discipline, particularly when managing risk. A widely accepted principle advises traders to limit their risk to 1% of their total trading capital per trade. This precautionary measure helps safeguard traders from significant losses and preserves their capital for future trades.