1️⃣% RISK RULE

Why to Risk only 1-5% per trade ❓

The main reason is... No one wins every trade, and the 1% risk rule helps protect a trader's capital from declining significantly in unfavourable situations.

If you risk 1% of your current account balance on each trade, you would need to lose 100 trades in a row to wipe out your account.

For eg.

Suppose your capital is $10,000 and with 1% rule here your risk will be $100.

We are going to use simple formula to decide final amount.

Amount to borrow = Risk / Stoploss %

$2000 = $100 / 5%

You can take take 5x leverage  For this trade (5 = 500 / 100).

How to apply this non Leverage trade ? It is simple ...

Amount to Invest  = Risk / Stoploss %

$2000 = $100 / 5%

You will invest $2000 and 5% Stoploss.

So on any given trade you would loose only 1% of capital or you will make 1%-3% of capital in single trade.

And investing only 1% per trades makes you sleep better without any worry knowing fact that you are going to loose only 1% of whole capital or make 2%-5%.

THIS IS HOW PROFESSIONALS TRADE ‼️