I have noticed that people are advised to gamble with 2% of their income while some said the advised amount to be used for gambling should not be more than 1% of their income.
Trading is not gambling but it is very risky also because most traders are also losing. But with small right strategies and patience, losses can be minimized while profit can be achieved. People think the right strategies starts with the percentage of money used for trading from their income
What percentage of someone's income do you think is advised to be used for trading?
The percentage of a trader's money being used for trader does not really matter because if the skill set is not right, any amount can be lost. What is most important is mastering the skills through studies and back-testing. When the skill set is right, any amount of deposits made can be compounded and built into something significant over a period of time. If you start with $100 as a trader and is able to make 2% profits daily, in a matter of months, you will be growing that amount exponentially. On the other hand, if you have $1000 deposit but lack the proper skill, in a matter of weeks you will be grounded. However, for someone still learning and not confident, I recommend using 2% maximum to trade.