Beginner
The 1 percent rule in forex position sizing
Why many beginners cap risk per trade and how small risk helps survive losing streaks.
What is the 1 percent rule?
The 1 percent rule means risking no more than 1% of your account on a single trade. It is a beginner-friendly risk framework, not a law.
Why it helps
Small risk makes losing streaks survivable. Ten losses at 1% each hurt, but they do not usually destroy the account.
How to apply it
Common mistake
Risking 1% does not mean using 1% margin. It means the expected loss at stop loss equals 1% of the account.
The rule is simple, but following it under emotion is the real skill.
Content is for reference only, not investment advice. Forex trading carries high risk.
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