The 2% Rule Saved My Account - My Drawdown Recovery Story

Last month I violated my own risk management rules and paid the price. Sharing this as a cautionary tale.

What Happened:

• Usually risk 2% per trade max
• Got overconfident after 8 wins in a row
• Increased to 5% per trade
• Hit a 6-trade losing streak
• Lost 28% of account in 2 days

The Recovery:

• Immediately stopped trading for 1 week
• Reviewed every losing trade
• Went back to strict 2% rule
• Took 6 weeks to recover the losses
• Now back to break-even

Lessons:

1. Never increase risk after winning streak
2. Discipline > Intelligence
3. 2% rule exists for a reason
4. One bad day can wipe out weeks of profits

Anyone else have similar experiences? How did you recover mentally?