How the trade amount works
The amount is a risk parameter, not a level of confidence.
Set the trade amount from the balance rather than from your mood.
- The size of one trade
- $2.00
- Deposit after 5 losses in a row
- $90.39
- Losses the deposit can take
- 50 in a row
The trade amount is a risk parameter. At 2% a run of ten losses does not end the account.
The trade amount is exactly what you lose when you are wrong. Not part of it, not half of it, all of it. So the question “how much should I stake” really reads “how much am I prepared to lose right now”.
- Balance $50
- — trade $0.5-1
- Balance $100
- — trade $1-2
- Balance $250
- — trade $2.5-5
- Balance $500
- — trade $5-10
The 1–2% rule looks overcautious only until a losing run arrives. Five mistakes in a row at 2% is minus 10% of the balance — a working situation. At 20% it is minus two thirds of the account.
The second half of the rule: the amount is recalculated from the current balance. The balance falls, the trade falls with it. That is a built-in brake that works without your involvement.
The most expensive beginner mistake is raising the amount after a loss. That decision is taken in the worst emotional state, and precisely when the risk has already risen.
Key takeaways
- 01The risk of a trade equals its amount — all of it is lost.
- 02The working range for learning is 1–2% of the balance.
- 03The amount is recalculated from the current balance, not the starting one.
The usual mistake
Tying the amount to how confident you feel: “I am sure about this one, I will stake more.” Confidence is the worst predictor of a result there is.
A practical example
Balance $100, rule 2%. The trade size is $2. After three losses the balance is $94 and the new size is $1.88.
The difference looks negligible, but it is exactly what separates a controlled drawdown from an emptied account: the risk falls automatically while you are not at your best.
On risk
The trade size is the main lever of risk. A mistake in it destroys an account faster than any mistake in analysis.
A note from Leon Mercer Academy
Recalculate the amount at the start of a session and do not touch the field again that day. Your hand reaches for it exactly when the decision has become emotional.
Lesson 11 of 15 in “BINODEX START”