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Professional traders never risk more than 1% per trade. Here is exactly why. When I look back at my $5,400 loss, I see a trader who wasn't trading the market; I was trading my ego, betting sizes that made my heart race every time $ETH ticked against me. I was gambling, not managing risk. The 1% rule is simple: never risk more than 1% of your total account balance on any single trade. If your account holds $10,000, your maximum stop loss exposure is $100. That’s it. If you have a $1,000 account, your risk is capped at $10.

Consider the survival math. If you risk 5% per trade and hit a rough streak, losing 20 trades in a row drains your account entirely. With the 1% rule, you would need to lose 100 consecutive trades to...