A common question I get asked is how much one should risk in a given trade. Many traders have different perspectives on this however I am very fond of the good old 2% rule. There is times however when there are many confluences where I risk more however overall for all traders this is a risk amount to stick under. This would also mean that by getting a good 2 to 1 reward to risk trader it will would build an account by 4% approximately and if one got a good 3 to 1 risk reward it would build an account by around 6%. And to think, this is from a single trade perspective.
1 to 1 risk of course builds the the account by around 2%..
For more on how Risk Reward works in Forex click here.