The 2% rule in day trading is an investing strategy where traders risk no more than 2% of their available capital on any single trade. This rule helps traders manage risk and preserve their capital by limiting the potential losses on each trade.
7 answers
CoinMasterMind
Thu Dec 12 2024
The 2% rule represents a fundamental investing strategy.
Chloe_carter_model
Thu Dec 12 2024
According to this rule, an investor should not risk more than 2% of their total available capital on a single trade.
Stefano
Thu Dec 12 2024
This limit helps to manage risk and prevent significant losses.
InfinityVoyager
Wed Dec 11 2024
To apply the 2% rule effectively, investors need to determine their available trading capital.
CryptoProphet
Wed Dec 11 2024
This amount is crucial as it sets the limit for how much they can afford to lose on a trade.