The one percent rule

Here is the first of the two numbers. It is one sentence long.

The rule

Risk one percent of your account on any one trade.

The band taught by experienced traders is one to three percent. Three percent is the top of that band, and it belongs to somebody who has already traded a plan for years. Your number is one percent.

One percent means the money you lose if the trade goes fully against you and the stop loss (SL), the price where a losing trade closes automatically, is hit.

One trade may cost one percent of the account. Nothing more complicated than that.

One percent in money