The 2% Stop Loss rule (Trading risk management)

Here is the link.

Risk management is one of the most important aspects of trading. How does one manage risk so that a run of losing trades doesn't wipe you out? How does one deal with the emotional risk of not acting on a stop loss? How much money do you risk in any trade? The 2% rule is by far the best way of managing all of these potential problems and ensuring that your position size for every trade is exactly spot on so you don't have to worry about the money - just focus on the charts and the discipline.

5:37
2% rule

Only risk 2% of capital in any one trade

Protects you from a run of losing trades

50 trades goes to zero.

R - Run
Enter share at R10.00
Stop loss at R9.00
Risk per share = R1.00

2% = R1000 (R50k portfolio)
Therefore buy 1000 shares

18:48
No stop loss = GO BUST
Be comfortable with Rands at risk
Reduces stress when stop is hit
Determine stop loss level first
Use 2% rule
Thank work out quantity
Make sure Rands at risk doesn't scare