Question 15—The 6% Rule

Find the statement about the 6% Rule that is correct:
1. It will protect your account from a drawdown caused by a bad trade.
2. It will protect your account from a drawdown caused by a series of bad trades.
3. When losses begin to mount, the best response is to trade more actively, to trade your way out of a hole.
4. The 6% Rule needs to be applied after putting on a trade.

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