“You can’t risk more if your account grows.” It’s a belief that divides traders. On one hand, sticking to strict percentage-based risk helps manage downside. On the other, as your account increases, so does your capacity to handle larger positions. So is it true that you can’t risk more as your account grows? Or is there a smarter way to scale risk with your capital? The answer lies in understanding the difference between risk percentage and risk exposure.

The role of fixed percentage risk

Many traders use a fixed percentage model — risking 1% or 2% per trade. This method offers two big advantages:

• It adjusts position size to your account size, scaling risk dynamically.
• It protects you from emotional decisions, especially after losses.

For example, if your account grows from £10,000 to £20,000, 2% risk per trade doubles in real value (£200 vs £400), but the risk relative to your total capital stays the same. This means your exposure scales without increasing the percentage of capital you put at risk.

This is why the phrase “you can’t risk more if your account grows” is misleading. You can risk more in absolute terms while keeping risk proportional.

When increasing risk makes sense

There are situations where increasing risk — either by percentage or exposure — can be strategic. These include:

• High-confidence trades backed by strong confluence
• Verified edge with positive expectancy over a long sample size
• Scaling models, where risk increases after a set number of wins
• Aggressive growth phases, where capital allocation is intentionally higher

However, these must be built into a well-defined system. Arbitrary increases in risk just because the account has grown lead to volatility, emotional swings, and potential blow-ups.

Growth doesn’t mean immunity from loss

The biggest mistake traders make after growing their account is assuming they’re now “safe” to risk more aggressively. But larger accounts face larger psychological pressure. Losing 5% of £2,000 feels manageable. Losing 5% of £200,000 hits differently.

That’s why scaling risk must include psychological readiness — not just mathematical logic.

Smart traders evolve their risk plan with their capital. They may introduce tiered models:

• 1–2% risk on standard setups
• Up to 3% on high-confidence setups
• Lower risk after drawdowns

This allows growth with control.

Compounding gains through disciplined scaling

If you want to grow your account sustainably, compounding through disciplined position sizing is more effective than increasing your risk percentage. For example:

• £10,000 account risking 2% = £200 risk/trade
• £50,000 account still risking 2% = £1,000 risk/trade

You’re still risking 2%, but you’re now earning five times the profit on the same edge. That’s how professional traders scale — they let their edge compound while keeping risk steady.

In contrast, if you jump to 5% or 10% risk because the account is bigger, one or two bad trades can wipe out weeks of gains.

Conclusion: Can you risk more as your account grows?

Yes — but only in the right way. As your account grows, your absolute risk can increase, but your percentage risk should stay consistent or increase only within a structured, tested framework.

The smartest traders use growth as a signal to refine discipline, not abandon it. Risk more only when your strategy justifies it, not simply because you can afford to.

Learn how to scale risk safely and profitably with our expert-developed Trading Courses designed to guide you at every stage of your trading journey.