What is the 7% rule in stocks?
Understanding the 7% Rule in Stocks According to this rule, if a stock falls 7–8% below your purchase price, you should sell it immediately—no exceptions. In my experience, The 3 5 7 Rule of Stocks is almost magical! Never risk more than 3% of your total capital amount on a single trading position. The total risk for all positions should not exceed 5% of the trading capital. Each profitable trade should bring at least 7% more profit than each losing trade.Understanding the 7% Rule in Stocks According to this rule, if a stock falls 7–8% below your purchase price, you should sell it immediately—no exceptions.
What is the 90% rule in stocks?
Understanding the Rule of 90 The Rule of 90 is a grim statistic that serves as a sobering reminder of the difficulty of trading. According to this rule, 90% of novice traders will experience significant losses within their first 90 days of trading, ultimately wiping out 90% of their initial capital. It is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.