Course › Level 3: How not to lose your money

The 1% rule

Here's the most valuable sentence on this entire website:

Never risk more than 1% of your account on a single trade.

$100 account → risk $1 per trade. Sounds painfully slow? Look at what it buys you:

• At 1% risk, a losing streak of 10 trades costs you ~10% of your account. Annoying. Survivable. You keep learning.
• At 10% risk, the same streak costs ~65% of your account. You're finished, and losing streaks of 10 happen to good traders.

The math that kills accounts

Lose 50% of your account and you need +100% just to get back to zero. Losses hurt more than wins help, mathematically. The only defence is keeping every individual loss small, which is why professionals obsess over risk and beginners obsess over profits.

Risking 1% means you can be wrong dozens of times and still be in the game. Being able to stay in the game while you learn IS the edge.

Mark lesson complete