Trading seems like a way to make quick money. But many traders also make big losses. In most cases, there is no much success when you attempt to generate high returns with short-term trading. The financial markets are fluctuating every now and then. Several studies show that the bottom line is that most day traders make losses every year.
Don’t put all your money in one position
The rule of thumb is; you should never risk more than two percent of your total capital in one trade. However, this rule applies more to depot volumes of more than 10,000 dollars.
Nevertheless, even traders with a small deposit volume should keep their positions as small as possible. After all, the larger your positions, the more difficult it is to recover from a losing streak.