The 1% rule
Risk & Psychology
Survival math
Risk ≤1% of the account per trade. Ten straight losses = down ~10%, fully recoverable. Risk 10% per trade and the same streak = down 65%, needing +186% just to get back. Ruin is asymmetric.
Check yourself
Down 50%. The gain required to break even is…
- 50%
- 75%
- 100% correct
Half of what's left must double. Drawdown math is why pros obsess over defense first.
Learn this properly
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