#TrendingTopic Michael Toma's first rule ✍️✍️stated✍️✍️: "Plan your loss before you place your trade."
The video explains that while a regular trader focuses on profit, a professional trader is prepared for a loss. Risk management isn't about avoiding risk, but about being prepared for it to become a reality. An amateur trader asks "How much can I earn?", while a professional trader asks "How much am I willing to lose and where will I stop?".
The video also includes the quote: "If you don't control the risk, the risk will control you." This highlights that trading without an exit strategy makes you a slave to your emotions. By planning your loss beforehand, you are mentally prepared to accept the potential defeat, so it doesn't destabilize you. The video concludes that professional traders always plan their exits before entering a trade.