Is it better to risk a fixed % or fixed amount per trade?

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Should I risk the same absolute amount per trade (say ₹2000) or the same percentage of my current account?

#risk-management

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Wolf Cub

Trader · 15 days ago

Fixed percentage is mathematically superior. As your account grows, your position size grows with it (compounding). As your account shrinks, you automatically reduce size (preserving capital).

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Market Hawk

Trader · 15 days ago

Fixed amount is simpler for beginners. The psychological benefit: your absolute risk per trade does not change as your account fluctuates, keeping emotions more stable.

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Is it better to risk a fixed % or fixed amount per trade?

💡 2 Answers

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