Forex Risk Management Rules That Work | 2025 Trader Guide
Forex Risk Management Rules That Work
FCA reports show proper risk management reduces account blowouts by 83%. These rules come from professional trading desks.
Verified Risk Rules
| Rule | Effect | Source |
|---|---|---|
| 1% Risk per Trade | Limits drawdown to ≤20% | Van Tharp Institute |
| 2:1 Reward/Risk | 40% win rate needed | CME Group Study |
Stop-Loss Placement
- ATR-based: 1.5x ATR (14-period)
- Support/Resistance: Beyond key levels
FCA-Reported Mistakes
- Over-leveraging (main cause of 72% of losses)
- Moving stop losses further away
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