Cryptocurrency Q&A What is the 1 rule in stock market?

What is the 1 rule in stock market?

Leonardo Leonardo Wed Jun 19 2024 | 7 answers 1976
Could you elaborate on what is often considered the "1 rule" in the stock market? Many investors and traders swear by certain principles or strategies, but is there a universally accepted "one rule" that governs all decisions in the volatile world of stocks? If so, what is it? Does it involve managing risk, following trends, or perhaps adhering to a strict investment philosophy? Clarifying this "1 rule" and its implications for investors would be immensely helpful for those navigating the complex landscape of the stock market. What is the 1 rule in stock market?

7 answers

charlotte_clark_doctor charlotte_clark_doctor Fri Jun 21 2024
Importantly, the 1% rule does not mandate traders to invest only 1% of their capital in a trade.

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Silvia Silvia Fri Jun 21 2024
The 1% risk rule serves as a guideline for cryptocurrency traders to manage their risks effectively.

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CoinPrince CoinPrince Fri Jun 21 2024
Traders are free to allocate as much capital as they deem fit, based on their individual strategies and risk appetites.

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CryptoBaron CryptoBaron Fri Jun 21 2024
It stipulates that traders should not risk more than 1% of their account capital on any individual trade.

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Dario Dario Fri Jun 21 2024
However, the rule serves as a safety net, requiring traders to close a position if it loses more than 1% of their total capital.

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