🛡️ The 3 Golden Rules of Risk Management
1. The 1% RuleNever risk more than 1% of your total account on a single trade.If your account is $10,000, your maximum loss must be $100.Calculate your position size based on this risk, not your emotions.
2. The Invalidation PointSet your Stop-Loss before you enter the trade.Place it where your market thesis is officially proven wrong.Never move your Stop-Loss lower once the trade is live.
3. Risk-to-Reward Ratio (R:R)Aim for a minimum of 1:2 or 1:3 R:R.Risking $100 must give you a chance to make $200 or $300.With a 1:3 ratio, you can be wrong 60% of the time and still make money.
📊 How the Math WorksIf you lose...You need this gain to break even...10%11%30%43%50%100%
🤯Live to fight another day. Protect your capital at all costs.
👇 Drop a Comment Below:What is your go-to Risk-to-Reward ratio? Let's discuss!
