## Why 2%?
2% rule = even **30 consecutive losing trades** still leaves 54.5% equity. Mathematical and psychological survival.
At 10% per trade → -52% after 7 losses (and you'd freeze long before).
## How to size?
$10,000 account → max risk $200 per trade.
With 30-pip stop on EUR/USD:
Position = 200 / (30 × $10) = 0.67 lot
## Practical
• Always set stop first, position size second
• Build the formula in a spreadsheet
• Too small ≠ wrong. Too big = destined to blow up.
## Advanced: floating R
Use 2% of current equity (not initial). Auto-deleverages during drawdown.
