Could you elaborate on what is often considered the "1 rule" in the stock market? Many investors and traders swear by certain principles or strategies, but is there a universally accepted "one rule" that governs all decisions in the volatile world of stocks? If so, what is it? Does it involve managing risk, following trends, or perhaps adhering to a strict investment philosophy? Clarifying this "1 rule" and its implications for investors would be immensely helpful for those navigating the complex landscape of the stock market.
7 answers
charlotte_clark_doctor
Fri Jun 21 2024
Importantly, the 1% rule does not mandate traders to invest only 1% of their capital in a trade.
Silvia
Fri Jun 21 2024
The 1% risk rule serves as a guideline for cryptocurrency traders to manage their risks effectively.
CoinPrince
Fri Jun 21 2024
Traders are free to allocate as much capital as they deem fit, based on their individual strategies and risk appetites.
CryptoBaron
Fri Jun 21 2024
It stipulates that traders should not risk more than 1% of their account capital on any individual trade.
Dario
Fri Jun 21 2024
However, the rule serves as a safety net, requiring traders to close a position if it loses more than 1% of their total capital.