Cryptocurrency Q&A
What is the 3 5 7 rule in trading?
What is the 3 5 7 rule in trading?
Daniele
Thu Jun 06 2024
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7 answers
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I don't understand this question. Could you please assist me in answering it?
7 answers
mia_clark_teacher
Sat Jun 08 2024
The "3-5-7" rule in trading is a fundamental risk management principle. It guides traders in allocating their capital effectively to minimize potential losses.
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Chloe_martinez_explorer
Sat Jun 08 2024
The 3% rule, a crucial aspect of this principle, advises traders to never risk more than 3% of their entire trading capital on a single transaction.
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Raffaele
Sat Jun 08 2024
This limitation ensures that even if a trade goes against the trader's prediction, the loss will not significantly impact their overall portfolio.
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EthereumLegend
Fri Jun 07 2024
The 5% rule complements the 3% rule, focusing on the total risk exposure across multiple trades.
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CryptoTitan
Fri Jun 07 2024
It suggests that traders should not expose more than 5% of their trading capital to potential losses across all open positions combined.
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