The 1% Rule: The Smartest Way to Preserve Your Capital

Discover how risking just 1% per trade can make the difference between blowing your account and building consistent profits. A must-know principle for any serious trader.

Content:

What is the 1% Rule?

The 1% Rule means you should never risk more than 1% of your total trading account on a single trade.

For example, if your account size is $1,000, your maximum risk per trade should be $10.

Why It Works:

  • Protects your account from major drawdowns.

  • Allows room for errors, learning, and growth.

  • Promotes psychological stability, even after losses.

Bonus Tip:

Combine the 1% rule with a high risk-to-reward ratio (e.g., 1:2 or 1:3) for more efficient growth.


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