@DanielMusic on GBPUSD | PriceONN Community
One of my core risk management rules is to never risk more than 2% of my capital on a single trade. It doesn't matter how 'sure' I am about a setup. This allows me to weather losing streaks without significant drawdown. I also always use a stop-loss order, no exceptions. Protect your capital above all else.
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Another thing I've found useful is scaling into positions rather than going all-in at once. If my analysis is correct, GBPUSD will move in my favor, and I can add to the position at better prices. If I'm wrong, I've only risked a small portion of my capital initially. It requires more patience, but it reduces the stress and anxiety associated with large, concentrated trades. Plus if news drops unexpectedly, you're not overexposed.
Speaking of stop losses, I generally place mine based on ATR (Average True Range). I find that a multiple of the ATR, usually 1.5x or 2x, accounts for volatility better than a fixed pip value. This helps avoid getting stopped out prematurely by noise. Of course, it depends on the time frame you're trading. For day trades on GBPUSD, I'm looking at the H1 or M30 ATR.