The Rule That Saves Accounts

3% maximum risk per trade 3 losses in a row = stop trading
3 days break after big loss

That's it. Follow this and you'll outlast 90% of traders.

Why 3% Risk?

Simple math destroys most traders.

Risk 10% per trade:

  • 5 losses = down 50%

  • Need 100% gain just to break even

  • Nearly impossible to recover

Risk 3% per trade:

  • 10 losses = down 30%

  • Need 43% gain to recover

  • Totally achievable

The difference between survival and death.

The 3-Loss Circuit Breaker

Lost three trades in a row? Stop immediately.

Why this matters:

When you're wrong three times straight, something's broken:

  • Your analysis is off

  • Market conditions changed

  • You're emotional and making bad calls

Don't make it four losses. Stop. Analyze. Fix the problem.

Most traders lose everything trying to "win it back." The market will be there tomorrow.

The 3-Day Reset

Had a big loss (over 5% of account)? Take 3 days off completely.

No charts. No Discord. No crypto Twitter.

What happens during the break:

  • Emotions cool down

  • Perspective returns

  • Revenge trading urge fades

  • Clear thinking comes back

Day 4: Review what went wrong. Make a new plan. Start fresh.

Big losses mess with your head. Trading emotional is trading broke.

Real Example

Account: $10,000

Trade 1: Risk $300 (3%) - LOSS Balance: $9,700

Trade 2: Risk $291 (3% of new balance) - LOSS
Balance: $9,409

Trade 3: Risk $282 (3% of new balance) - LOSS Balance: $9,127

STOP. Circuit breaker triggered.

Down 8.7% total. Painful but survivable.

What happens without the rule:

Trade 4, 5, 6 trying to recover = Account at $7,000 or worse.

The 3-loss rule saved $2,000+.

How to Implement

Before every trade:

  • Calculate 3% of current account balance

  • Set position size to risk exactly that amount

  • Place stop loss accordingly

  • No exceptions

After every loss:

  • Mark it in your journal

  • Count consecutive losses

  • At three, stop trading immediately

  • Review what's wrong before continuing

After any loss over 5%:

  • Close all charts

  • Set calendar reminder for 3 days

  • Do literally anything else

  • Come back fresh

The Psychology

This rule removes decisions during emotion.

You don't have to think:

  • "Should I keep trading?" No. Three losses = stop.

  • "Can I trade today?" No. Big loss = 3 days off.

  • "How much should I risk?" Always 3%.

Automation beats willpower every time.

What This Prevents

❌ Blowing up your account in one bad day ❌ Revenge trading spirals ❌ Emotional decision making ❌ Trying to "make it back quickly"

✅ Keeps losses manageable ✅ Forces breaks when needed ✅ Protects capital long-term ✅ Maintains emotional stability

The Harsh Reality

Most traders fail because of one catastrophic day, not gradual losses.

They risk too much. They don't stop when wrong. They trade emotional.

The 3-3-3 rule prevents all three killers.

It's not exciting. It's not sexy. It won't make you rich overnight.

But it will keep you in the game long enough to get good.

And that's how you actually win.

Your Action Now

Write this down and stick it to your monitor:

3% RISK MAX 3 LOSSES = STOP 3 DAYS AFTER BIG LOSS

No exceptions. No "just this once." No negotiations.

This rule is your lifeline. Use it.

This is risk management education, not financial advice. Protect your capital above all else.