💡 The 90/90/90 Rule: A Sobering Truth About Trading and Risk Management

As finance professionals, we often encounter statistics that resonate deeply with our understanding of risk and opportunity. One such statistic is the 90/90/90 Rule in trading:

👉 90% of traders lose 90% of their capital within the first 90 days.

This isn’t just about trading—it’s a lesson in discipline, strategy, and decision-making, principles that extend far beyond the financial markets.

📉 Why Does This Happen?

1- Impulse Over Strategy: Many enter the market without a clear plan or long-term perspective.

2- Emotional Biases: Fear of loss or greed for quick gains often clouds judgment.

3- Poor Risk Management: Misjudging leverage or ignoring downside protection accelerates failure.

💡 Lessons for All Financial Decisions

Whether managing corporate investments or personal portfolios, the 90/90/90 Rule underscores the importance of:

* Strategic Planning: Align decisions with long-term goals.

* Data-Driven Insights: Remove emotions and focus on fundamentals.

* Risk Mitigation: Safeguard capital through sound controls and diversification.

As leaders, it’s our responsibility to not only understand these principles but to foster them within our teams and organizations. Financial acumen is not about avoiding risk but about managing it wisely to achieve sustainable growth.

💬 I’d love to hear your thoughts: How do you apply disciplined decision-making to financial challenges?