A: This is entirely up to you and depends on your risk tolerance. But the best way to manage your risk is to never spend more than 2% of your total investable income on any one trade. This way, even if a trade doesn’t work in your favor, you will never lose big.
Now if you’re trading with what’s considered a “small account” (an account with less than $25,000), keep in mind you could be subject to pattern day trader restrictions (no more than three day trades – in and out on the same day – in a rolling five-day period unless you have $25,000 or more in your account).
One way to avoid that is by placing no more than three trades per week in which you get in and get out on the same day. If you’ve got $25,000 or more in your account, you can place as many trades as you want in any given week.