Answer
The 3-5-7 rule suggests risking no more than 3% account-wide, 5 trades max daily, 7% daily profit target before stopping. Varies by trader; core idea limits exposure, prevents overtrading. Pair with 1:2 risk:reward. Stops tilt after losses; caps preserve capital. Adapt to style—scalpers tighten, swingers loosen. Rules enforce discipline where emotions fail.
Looking for a broker that fits your needs?
Compare Top Brokers