AcademyRisk ManagementLesson 3
M6 · L3Risk Management

The Maximum Daily Loss Rule

If you hit your daily loss limit, the platform closes. No exceptions. This rule saves accounts.

What This Means

Every professional trader has a daily stop-out rule. If you lose 3% of your account in a single day, you stop trading for that day. You can't make good decisions after multiple losses — your emotions take over and you revenge trade, widen stops, or overtrade. The 3% rule protects you from your own psychology.

Visual
The Rule

If account drops 3% from today's starting balance → close the platform. Trade again tomorrow.

A bad day is recoverable. A blown account is not.

COPY THIS
Do these steps exactly
1
Every morning, write down your account balance before you start trading
2
Calculate 3% of that balance
This is your daily stop-out level
3
Set an actual price alert or reminder at that level
4
If your account hits that level at any point during the day → close ALL trades → close the platform
5
Do not trade again until tomorrow's session
6
Spend the rest of the day reviewing what happened — not trying to recover
Common Mistake

The days that destroy accounts are always the days after you ignore this rule 'just this once'. It's never just once.

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