Having considered Professional trading as competency of Trading Self Check and various ways to diversify (Ultimate investment: currency vs. gold) we have approached the question of technical aspects of trade. The forst of them is The 5 Percent rule.

Another popular and effective technology of risks management is the 2/1 rule. This correspondence of 2 to 1 means a wise proportion of the risk and opportunity and is as well known as the income marker. The experienced traders who successfully apply this rule may loose 1 USD in a loss deal only if they get 2 USD in a winning operation. The core of this technique is supporting the deal if it’s showing positive dynamics and leaving the market once you see that the deal looses. This correspondence means that you may have twice more loosing deals than the winning ones while your loss will be 2 times less than the winning position and your result will by no means be negative. Many successful traders will not consider a deal once they are sure that their 1 USD loss opportunity is combined with the 2 USD winning opportunity. There are some expecting higher profits. Any way, the result of your trade should be positive.