Rule of Seven | Penny Stock Chronicle

Rule of Seven

Rule of Seven

The rule of seven states that 7 consecutive trades in a row that net 10% gains will nearly equal 100% in total profits due to compounding. This rule is so important because it proves that one does not need to take huge risks and go after “long shot” trading set ups in order to make a large amount of money.

It is much easier to aim for 10% profits 7 times in a row as oppose to aiming for 100% profits in a single stock. By using the rule of 7 to re-adjust your mind you will automatically separate yourself from the get rich quick crowd, and ultimately increase your chances of making serious money.

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Skills

Posted on

March 21, 2017