🛡️ The 1% Rule That Keeps Traders Alive
The single biggest reason retail accounts get wiped out isn't bad stock picks—it's poor position sizing.
If you risk more than 1–2% of your total portfolio equity on a single trade, a streak of bad trades can decimate your account.
📐 Quick Math:
Account Size: $10,000
Max Risk Per Trade (1%): $100
Stop Loss: $5 below entry
Position Size: Maximum 20 shares.
Protect your downside first; the upside takes care of itself.
#TradingRules
#RiskManagement #TraderMindset .
The single biggest reason retail accounts get wiped out isn't bad stock picks—it's poor position sizing.
If you risk more than 1–2% of your total portfolio equity on a single trade, a streak of bad trades can decimate your account.
📐 Quick Math:
Account Size: $10,000
Max Risk Per Trade (1%): $100
Stop Loss: $5 below entry
Position Size: Maximum 20 shares.
Protect your downside first; the upside takes care of itself.
#TradingRules
#RiskManagement #TraderMindset .
