The 1% Rule: Risk Management for New Traders

Most new traders blow up not because they pick wrong — but because they bet too big.

The 1% rule is simple: never risk more than 1% of your total account on a single trade. On a $10,000 account, that is $100 of risk per trade — not $100 invested, $100 you could actually lose if your stop hits.

Why it works

• You can be wrong 10 times in a row and still have 90% of your account.

• It removes emotion — the position is small enough to think clearly.

• It keeps you in the game long enough to let your edge play out.

Survive first. Profits come to the trader who is still around.

La regla del 1%: nunca arriesgues más del 1% de tu cuenta en una sola operación.

Educational content, not financial advice. Talk to a licensed professional about your situation.