Alright, so a lot of men advised me to take a 5% chance; some suggested that 3% and 2% were all BS. What I believe will work well with a $100,000 account is
Starting with a 0.5% risk and increasing it to a maximum of 3.5%, you can eventually pass by raising the risk to 1%.
Likewise for sponsored and challenge accounts
It’s not a casino, you guys stating that 3% is absurd.
Indeed, risk management is the key ingredient. Getting certified as a risk manager or analyst should be the initial objective. Professional trading follows.
I think psychology and risk management are underappreciated! However, it ought to be the primary focus for any trader.
With the appropriate risk management, even when using a coin flip buy/sell strategy, you can turn a profit or break even.
A perfect strategy with a 90% win rate will fail with an undisciplined trader. Conversely, stellar risk management and psychology can turn a profit with a 50% win rate. Learn psychology first, write an adaptable risk management plan, and then focus on strategy. Sadly, this advice often falls on deaf ears.
When you explain this to those attempting to pass a challenge with 20% to 30% risk per trade, they will tell you that this is the quickest route. and return once the challenge is lost or the account is compromised, accusing the props.
Oh yeah, it’s hysterical how people fail to take responsibility for their trades.
Increased risk strategies can pass challenges faster but will blow more accounts. That’s fine if it’s part of the plan. The real issue is the failure to plan. Most traders just spray and pray without any strategy.