3 Risk Management Rules That Saved My Account

Most traders blow up not because they pick bad trades — but because they have zero risk framework.

After 8+ years in the markets, these are the 3 non-negotiable rules I follow on every single trade:

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1. Never Risk More Than 1-2% Per Trade

It doesn't matter how "sure" you are. One bad trade shouldn't put a dent in your capital. If you're risking 5-10% per position, you're not trading — you're gambling.

The math: With 1% risk per trade, you'd need 100 consecutive losers to blow your account. With 10% risk, it only takes 10.

2. Always Define Your Exit Before Your Entry

Before you click buy, you should already know:

• Where your stop-loss is (and it should be based on structure, not emotion)

• Where your target is (minimum 2:1 reward-to-risk)

• How much size you're taking (calculated from your stop distance)

If you can't answer all three, you don't have a trade — you have a hope.

3. Cut Correlation Risk

Having 5 "different" trades that all move with the S&P 500 isn't diversification. If one macro event tanks your entire portfolio, your positions were correlated.

Audit your book weekly. Make sure you're not accidentally 5x leveraged into the same thesis.

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These rules aren't sexy. They won't go viral on Twitter. But they're the reason I'm still in the game while 90% of retail traders aren't.

If you want the full framework — including our position sizing calculator and daily risk-managed signals — Black Tier VIP is where we break it all down.