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Why risking 1% per trade is not always smart
Most traders are taught that risking 1% per trade is the safe and disciplined way to trade. It sounds sensible because it limits damage, protects the account and stops one bad trade from becoming a disaster. But no fixed risk rule is automatically smart in every market, every strategy or every stage of a trader’s journey.
In this episode of Breaking News to Trading Moves, we break down why the famous 1% rule can help some traders, hurt others and create a false sense of discipline when it is used without context.
Why the 1% rule became popular
The 1% rule gives traders a simple way to control…
The skinny
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