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The Secret 20% Rule: Protect Your Trading Account…
Follow this rule before you get wiped out by a single bad trade or a series of losing trades…
It's time to take control of your risk management with the Secret 20% Rule.
Here's how it works:
Determine your ideal trading account size (e.g., $20,000).
Calculate your risk per trade based on that account size (e.g., 1% of $20,000 = $200).
Keep only 20% of your ideal account size in your actual trading account (e.g., $4,000).
Leave the remaining 80% in your bank account (e.g., $16,000).
By implementing this simple hack, you create a built-in safety net for your trading account.
Even if you experience a bad trading day or a string of losses, the most you can lose is 20% of your ideal account size.
This means you'll never blow up your entire account in one go.
The Secret 20% Rule is particularly useful if you've struggled with tilt trading or poor risk management in the past.
It forces you to trade with discipline and protects you from making impulsive, emotional decisions that can devastate your account.
Don't let another blown account derail your trading career.
Implement the Secret 20% Rule today and give yourself the peace of mind that comes with knowing your account is protected from catastrophic losses.
Take action now:
Calculate 20% of your ideal trading account size.
Transfer the excess funds to your bank account.
Adjust your risk per trade based on the 20% in your trading account.
Start trading with confidence, knowing that the Secret 20% Rule has your back.
As always :)
Rooting for you,
Paper Gains.
P.S. A couple of days ago, I had an interview with Benzinga where I shared what I expect for next week’s market.
Go to the time of 1:44:33, and you’ll see me there. 😎