 How's it going guys? You're right. It's Mark And I thought I would make this video because if I or if someone had told me this when I first started trading It would have been massively helpful and would have saved me from Losing kind of a lot of money to start off with before we got to where right now. So and that is Never using more than 2% of your equity of your account or 2% of the money that you have in one particular trade So there's quite a few reasons and for that when I first started out I was kind of using 30 40 50 60% of my account on one trade and then the trade goes bad And you lose all your money and then to try and get back to where you were It is pretty pretty difficult and I get it because when you you know when you first start out trading You're kind of swinging for the fences. I mean trying to get rich quick He sees people on Instagram and all these foreign traders are like, yeah I trade folks from my laptop in my Rolls Royce and But I think quite frankly 99.9% of that is all bullshit and I think it's just a lot of kind of referrals and and so on but anyway And that's something else. So just a few facts for people right for when you're losing money on your account That I've found so if you lose 25% of your account, right? So let's say, you know, you put 25% of your account on one trade and you lost it all And you blew your account or blew that trade You would need to make 33% with the rest of your account to be back to where you started, right? If you used to lose 50% So if you use 50% of your account on the trade and you lost it You would need to make a hundred percent on the rest of your account to be back where you started And then if you lost 75% you would need to make 400% to be back where you started I mean if you use 90% in trade you would need of your account You'd need to make a thousand percent to be back to where you started. So, you know, basically what I showed you is losing Losing money and then trying to make it back is massively difficult Whereas if you only risk 2% of your account and I'll just show you here. So you can see I've got You know, I think I've got them. Let's have a look just double check I've got what's the most I've got invested in one stock is Looks like 15% with Tesla, but this is all broken down into, you know 1% trade you can see I'm using 0.95% of account and at the time when I buy it's always 1% That's that's the number that I use And so basically it just helps you first of all helps you manage manage your risk, right? So if you have 10 trades in a row that you completely flunk on you haven't used your stop loss or anything like that You're 10 trades go to zero You've only lost well You've lost 20% of your account which isn't ideal But that means you haven't set a stop loss and you've completely blown it So it helps you as I say manage your risk because if you're wrong 10 times in a row First of all if you're wrong 10 times in a row like that and you completely blow it You need to probably take a step back and reevaluate. I'm kind of what you're doing and use that as a kind of a learning experience And also by only using 1 or 2% of your account it helps you kind of keep a level head so for example these trades that Let's have a look that I'm down on right Because it's only so Activision for example, I'm down 30% but it's only 2% of my account So whereas if that was 90% of my account, oh my god, but I need to try to cut my losses And and kind of call it the end here. I can have a little bit of composure, right? I can take a look at the chart I can see right, okay You know, obviously we've had a pullback and But over the long term the stock is is pretty good, right? You can see that it's been trending up You see it's curling into the the EMA is below the SMA blah blah blah and I can I have a proper analysis with a level head Because I mean it's only 2% of my account And I'm it's not going to break the bank and it also gives me a little bit of flexibility In terms of of you know kind of moving forwards. I've still got equity there So, yeah, I just I just thought that I would share this if you in fact if you take the time if you take a look at Some of the e-toro Profiles, right if you just jump on your newsfeed and just take a look at how common I'm not gonna do it now because it obviously I don't know. I don't put any video But if you just take a look at how many people are using way more than 2% per trade And how that ties up a lot of equity Gives you a little lot less flexibility The risk is a lot higher and you know, I think I hope I've kind of articulated that especially if you're starting out You don't want to be risking, you know a massive amount of trade especially leveraged positions as well where there's a lot more volatility so I hope that helps. I hope it wasn't just kind of a ramble and didn't really make any sense If you found it helpful, like something in the comments, let me know if you'd like other videos like this And if you have any questions at all I'd be more than happy to answer in that or if you want to DM me on Instagram We can have a proper conversation there and kind of like takes back and forth It'd be a bit easier if that's if you want to have a conversation It's Mark Freeman official would be in the link down in the description And yeah, I think that's everything so thanks for watching guys if you enjoyed it like And subscribe and then comment and so on and share it but apart from that I will catch you guys and we've update videos and so on moving forwards. Thanks. Cheers. Bye