Risk Management for Gold Traders: Stop Loss and Position Sizing

Traders who last are not the ones who are always right — they are the ones who lose small when wrong and let profits run when right.

The 1–2% rule

Risk no more than 1–2% of your account on any single trade. With a 10,000 USD account and 1% risk, the most you can lose on one trade is 100 USD.

Place your Stop Loss with ATR

ATR (Average True Range) measures the average price swing. A stop around 1.5× ATR reduces the chance of being stopped out by normal noise.

Risk:Reward

• If you risk 1 unit, aim for at least 1.5–2 units of reward
• At 1:2, you can be right only 40% of the time and still be profitable over the long run

What not to do

• Move your stop further away when price goes against you
• Average down without a plan
• Trade with money you need

Our AI signals always show ATR-based SL and TP levels to support your decisions.