What is the 1 risk rule in trading?
Could you please explain to me the concept of the "1 risk rule" in trading? I've heard about it but am not entirely clear on its significance and how it applies to financial transactions. Could you elaborate on how this rule works, and why it's considered an important principle in managing risks when engaging in trading activities? Additionally, could you provide any examples or scenarios where this rule could be effectively applied? Thank you for your assistance in clarifying this matter.