Risk

The 1% rule: how much should you risk per trade?

5 min read · Updated 14 November 2026

Short answerRisk no more than about 1% of your account on any one trade: decide your stop-loss, then size the position so that hitting the stop loses only that 1%.

Position sizing answers one question: how big should this trade be? Most beginners answer it by feel. The 1% rule answers it with arithmetic, and that is why it survives losing streaks.

Why 1%

At 1% risk, ten losing trades in a row costs you about 10% of your account. Painful, but recoverable. At 10% risk per trade, the same streak leaves you with about a third of your money, and you need to nearly triple it just to get back to where you started.

How to calculate your position size

Work out your risk in money: account size × 1%.
Choose your stop-loss price and measure the distance from your entry.
Position size = money at risk ÷ distance to stop.

Example

Account: $30,000. Risk at 1%: $300.

Buy Solana at $150 with a stop-loss at $144. Distance: $6 per SOL.

Position size: $300 ÷ $6 = 50 SOL (worth $7,500).

If the stop is hit, you lose $300, exactly 1%.

Notice that the stop decides the size, not the other way round. A wide stop means a smaller position; a tight stop allows a bigger one. Your risk stays the same.

Adding a daily limit

Pair the 1% rule with a daily loss limit, such as 3–5% of your account. When you hit it, stop for the day. Most large losses come from the trades taken while trying to win back an earlier loss.

You cannot control whether a trade wins. You can control exactly how much it costs you when it does not.

Practise this with virtual money

Neeyum’s order ticket can work backwards from the amount you are willing to lose to the stop-loss price, and Trade Guard enforces a daily loss limit.

Get Neeyum free on Google Play →Simulation only. No real money. Not financial advice.

Questions people also ask

Is 2% risk per trade too much?

Many traders use 1–2%. Beginners do better at the lower end while they find out how often their trades actually win.

Does the 1% rule apply with leverage?

Yes, and it matters more. Leverage changes how much margin you need, not how much you should be willing to lose.

This guide is for education only and is not financial advice. Crypto and leveraged trading carry a high risk of loss. Neeyum is a simulator: it uses virtual money and never places real trades.