The 1% Rule: Why Risking Small Keeps You in the Game

Author

Sl trading academy
September 10, 2025

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The 1% Rule: Why Risking Small Keeps You in the Game

Someone once told me, “Sir, if I just risk big on one trade, I can double my account fast.”

So they put half their account into a single position.
At first, the trade was in profit. Exciting.
But then the market turned. Within minutes, half their capital was gone.

That’s when they learned the hard truth:
Big risks don’t just bring big rewards — they also bring big disasters.

This is why experienced traders follow the 1% Rule.

What is the 1% Rule?
Simple: never risk more than 1% of your total account on a single trade.

  • If you have $1,000, your maximum loss per trade is $10.

  • If you have $500, your max loss is $5.

It may sound small, but here’s why it works.

Why the 1% Rule Works

1. It protects you from disasters

  • Even 5 losing trades in a row won’t destroy your account.

  • You live to fight another day.

2. It gives you emotional control

  • Small risk means small stress.

  • You can think clearly instead of panicking.

3. It makes growth consistent

  • Small, steady wins compound over time.

  • Trading becomes a marathon, not a sprint.

💡 Quick Tip:
Before every trade, calculate your 1% risk:

  • Account size ÷ 100 = Max risk.

  • Adjust your position size so that if your stop loss hits, you only lose that amount.

but keep in mind I never risk any position size on my trades.

I have a different strategy. do you want to learn ?

👉 Join my Beginner Course.

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