Hello Everyone,
I have 2 questions regarding total account max loss per day and position size.
a. What is a recommended max loss per day? i understand that 1-2% risk per trade is good risk management but was wondering on a daily basis with one's whole account.
b. Example: a $10K account size. $100 risk per trade. R = .50 on a particular trade. my position size is therefore 200 Shares. But the stock price is is $22.50. this would be a $4,500 position size or 45% of my BP. is it normal to have such a high % of my account invested on one trade?
thank you all for the help and clarity!
