In investing, "attack is the best defense." Impossible Context: This phrase suggests a strategy where aggressive actions are considered a strong defense, but in investing this is not a realistic or advisable approach.
The One Reason You Can't Follow the 2% Rule
“Risk no more than 2% of your funds per trade” — nearly everyone has heard this.
But very few actually adhere to it. Why?
But very few actually adhere to it. Why?
As a fundamental rule of money management, there is the guideline that you should not lose more than 2% of your funds on a single trade. Most people have heard it. They should understand the logic. Still, many traders cannot follow this rule.
Why can’t they follow it? Is it because of weak will? Because they forget the rule? — No.Because 2% feels insufficientThat is the main reason for almost all cases.
The true feelings of people who can’t follow the 2% rule are this: “If I only take 2% at a time, I’ll never grow,” “I want to bet bigger,” “I want to grow my funds quickly.” This sense of urgency causes them to break the rule.