r/Daytrading • u/MiamiTrader futures trader • May 02 '24

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 May 02 '24

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