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Learn → Module 2 → Lesson 1

Module 2 — Risk Management

Trading Risk Management: The 2% Rule Explained with Examples

Key Takeaways

  • ✓ The 2% rule means never risk more than 2% of your account on a single trade
  • ✓ On a $20 account that means a maximum risk of $0.40 per trade
  • ✓ This protects your account from being wiped out by a losing streak
  • ✓ Consistent risk management is more important than finding the perfect trade
  • ✓ Professional traders prioritise capital preservation above all else

📖 Recommended Reading

Scaling Micro Accounts in Forex by Armstrong Uzoagwa

Scaling Micro Accounts in Forex

by Armstrong Uzoagwa

The perfect companion to this course. The proven blueprint to grow a small forex account using smart leverage, discipline, and strategy.

Buy the Book

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