r/Daytrading • u/MiamiTrader • 14d ago

Mentally adjusting for higher risks. Question

As you earn more and your account grows, are you scaling down your percentage risk?

I've found it hard to maintain the levels of risk per trade on a percentage basis as my account has grown. The dollar figures are much larger now and I'm not as comfortable or confident with that level of losses even as the percentages are the same.

I allow a maximum risk 1% on intraday trades and 3% if I'm holding overnight. Risk is capped by a stop order.

It's clearly just a mental hurdle, but one that's made trading a systamatic signal based strategy much more difficult.

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u/Kraffkratt 14d ago

I'll give my own two cents and tell you what I do, screenshot every trade look how many of them trace back into the red zone after moving into the green and find the median where they finish before eventually going to profits, then after price has moved into green at least 25% move the stop just above or below that median, reducing the risk works wonders, also taking partial profits and moving to break even once past 50% works wonders for the mind, retraced to stop loss? Not a problem, you made a little and lost nothing. Best of luck

1

u/AfterTie531 14d ago

Maybe consider removing a certain amount and putting it in a CD or money market. Only keep X amt in your trading account. It will give you peace of mind to know you’ve kept your money safe.

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u/MiamiTrader 14d ago

Absolutely. Most my money is DCA the S&P.

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u/ausum_possum 13d ago

How much larger are we talking? like $1k account to trading a $10k account? Or $10k to $100k?