🧠 Trading Psychology: The 1% Rule
Losing traders focus on profits. Winning traders focus on risk.
What is the 1% Rule?
Never risk more than 1% of your trading capital on a single trade.
Why it matters:
· Keeps you in the game longer
· Reduces emotional trading
· Lets you survive losing streaks
Example:
If your account = $10,000
Max risk per trade = **$100**
Stop loss distance = $500
Position size = 0.2 BTC ($100 / $500)
Bad psychology:
“I’ll risk 5% to make more.”
→ One bad week can wipe you out.
Good psychology:
“I’ll protect my capital first.”
→ You live to trade another day.
Remember:
You can’t control the market, but you can control your risk.
Like if you follow risk management.
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