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Position sizing: the 1% rule, explained with real numbers

by admin | Oct 26, 2026 | Education, Intermediate

The 1% rule says: never risk more than 1% of your account on a single trade. Risk is not the size of the position; it is the amount you lose if your stop is hit. The two are linked by the stop distance, and that link is the whole point. The formula Position size =...
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