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The 3-5-7 Rule in Trading
2:53 · 8 chapters · Forex lessons, part 21
What you'll learn
3% per trade, 5% in total, winners bigger than losers: the 3-5-7 rule explained in under 3 minutes.
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- Key point 1
- What the 3, the 5 and the 7 each mean
- Key point 2
- How to turn 3% risk into a lot size using your stop-loss
- Key point 3
- Why correlated pairs count against the 5% total cap
- Key point 4
- Why a 7% target against 3% risk breaks even at about a 30% win rate before costs
- Key point 5
- How to apply the rule on a small account
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.