What is the 3 5 7 rule in stocks?
The 3-5-7 rule is a trading risk management strategy that limits risk to 3% of your account per trade, restricts total exposure to 5% across all open positions, and sets a 7% profit target on winning trades. It helps traders control losses and improve long-term consistency. The 10, 5, 3 Rule offers a simple framework for expected returns across major asset classes: 📈 10% – Equity 💵 5% – Debt Instruments 🏦 3% – Savings Account Use this rule as a guide to balance risk and reward while designing your investment portfolio.
What is the 90% rule in stocks?
Buffett recommended something strikingly simple: put 90% of the money in a low-cost S&P 500 index fund and the remaining 10% in short-term government bonds. This is a rather straightforward approach, and it has been dubbed the 90/10 rule. While Buffett himself primarily invests in individual stocks, he noted that for most people, the best thing to do is to own the S&P 500 index fund.
What is the 7 3 2 rule?
The theme of the rule is to save your first crore in 7 years, then slash the time to 3 years for the second crore and just 2 years for the third! Setting an initial target of Rs 1 crore is a strategic move for several reasons. How to become Crorepati in 10 years? To reach Rs 1 crore in 10 years, you will need to invest more aggressively. Example: If you invest Rs 43,000 per month in equity mutual funds or stocks with an average annual return of 12%, you could accumulate wealth of around Rs 1 crore in 10 years.