If I stuck to this one rule the day I started trading I would have...

โ€ข Saved $1,000's of dollars in losses.
โ€ข Sped up my learning process.
โ€ข Avoided every major account drawdown I've had.

If you're new to trading, make sure you stick to this ๐Ÿ‘‡๐Ÿผ

The 1% Rule ๐Ÿงต

The 1% Rule states that you should risk, at most, 1% of your total account on every individual trade.

This 1% risk is a function of two flexible components:

โ€ข Your Position Size: % of your account in the trade
โ€ข Your Trade Risk: % between your entry price and your stop loss
Want to take a larger position size? Make your stop tighter.

Trading a volatile stock? Size down on the trade.
The most important aspect of trading is risk management.

It's great to make money, but worthless if you don't have a system to keep it.

Over 50% of my trades are losses, but I'm still profitable because of the 1% Rule.

Keep losses small & let winners run!
"Nick, 1% risk isn't enough, my account is small."

New traders are EXACTLY who benefits the most!

By limiting each trade's potential losses to 1% it will take you:

โ€ข 29 straight losses to fall 25%
โ€ข 69 straight losses to fall 50%

It's tough to be that consistently bad ๐Ÿ˜…
You build trading experience with each trade you place. The more "at bats" you get the more you learn.

This doesn't mean overtrade. But it'll be nearly impossible to blow-up your account if you stick to 1% risk per trade.

This is how you speed up your learning process.
You will NEVER take a large loss again if you stick to 1% total risk.

Go through your past trades. How much $ would you save if you eliminated every large loss.

No bag holding, no averaging down, no emotional attachment.

You INSTANTLY become a better trader.
TL;DR: If I followed "The 1% Rule" since I started trading, I would have saved $1,000's of dollars.

Risk, at most, 1% of your total portfolio on each trade.

Portfolio Risk = (% Position Size) X (% Trade Risk)

Guarantee a trading career with no large losses!
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More from Trading

๐—ก๐—ถ๐—ณ๐˜๐˜†-๐—•๐—ฎ๐—ป๐—ธ๐—ป๐—ถ๐—ณ๐˜๐˜† ๐—ข๐—ฝ๐˜๐—ถ๐—ผ๐—ป ๐—•๐˜‚๐˜†๐—ถ๐—ป๐—ด ๐—ฆ๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜†

Complete Backtest and Indicator link

๐Ÿงต A Thread ๐Ÿงต

๐—ฆ๐—ฒ๐˜๐˜‚๐—ฝ:
๐Ÿ”ธ Monthly Option Buying
๐Ÿ”ธ 50 ema on 3 min timeframe
๐Ÿ”ธ Supertrend 10 , 3
๐Ÿ”ธ Chart : Banknifty , Nifty Futures as we backtested on futures
๐Ÿ”ธ Entry 9:20 to 3:00
๐Ÿ”ธ Max 3 Entries per day
๐Ÿ”ธ Premium nearest to 200 Rs only

[2/18]

Why Monthly Option buying ?
๐Ÿ”ธ Less theta decay compared to weekly options
๐Ÿ”ธ Less Volatility
๐Ÿ”ธ Supertrend and MA Settings
[3/18]


๐Ÿ”ธ Indicator Link
๐Ÿ”ธ Click on the below ๐˜ญ๐˜ช๐˜ฏ๐˜ฌ -> ๐˜ˆ๐˜ฅ๐˜ฅ ๐˜ต๐˜ฐ ๐˜๐˜ข๐˜ท๐˜ฐ๐˜ถ๐˜ณ๐˜ช๐˜ต๐˜ฆ๐˜ด -> ๐˜ˆ๐˜ฅ๐˜ฅ ๐˜ฐ๐˜ฏ ๐˜Š๐˜ฉ๐˜ข๐˜ณ๐˜ต from favourites and start using it !

๐Ÿ”ธ
https://t.co/zVXavqLBto
[4/18]

๐—œ๐—ป๐—ฑ๐—ถ๐—ฐ๐—ฎ๐˜๐—ผ๐—ฟ ๐—ฆ๐—ฒ๐˜๐˜๐—ถ๐—ป๐—ด๐˜€ :
๐Ÿ”ธ Max 6 Trades per day ( Both CE and PE buy)
๐Ÿ”ธ Timings 9:20 am to 3:00 pm
๐Ÿ”ธ Supertrend : 10,3
๐Ÿ”ธ Moving Average 50 ema
[5/18]

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