The 90/90/90 Rule
Why most beginners lose fast — and what to do instead.
The "90/90/90" rule is a harsh heuristic: many new traders lose most of their capital quickly. The root cause is rarely intelligence. It is usually position sizing, leverage, and emotional sequencing (what you do after a loss).
Why the Rule Exists
A Survival-First Playbook
Rules that keep you in the game
- Define an exit before entry: invalidation level, not hope.
- Keep risk per trade small enough to take multiple losses.
- Avoid revenge trades after a loss; step away and review.
- Measure results after costs: fees and slippage matter.
Key Takeaways
Early-stage trading is about survival, not hero returns.
Most accounts fail from sizing and sequencing, not IQ.
Control leverage, define exits, and limit risk per trade.
The 90/90/90 Rule
Why most beginners lose fast — and what to do instead.
The "90/90/90" rule is a harsh heuristic: many new traders lose most of their capital quickly. The root cause is rarely intelligence. It is usually position sizing, leverage, and emotional sequencing (what you do after a loss).
Table of Contents
Why the Rule Exists
A Survival-First Playbook
Rules that keep you in the game
- Define an exit before entry: invalidation level, not hope.
- Keep risk per trade small enough to take multiple losses.
- Avoid revenge trades after a loss; step away and review.
- Measure results after costs: fees and slippage matter.
Key Takeaways
Early-stage trading is about survival, not hero returns.
Most accounts fail from sizing and sequencing, not IQ.
Control leverage, define exits, and limit risk per trade.
Related Terms
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