Every serious trader must have one thing clear before entering any trade: the Risk/Reward Ratio.
It's not just about winning, but how much you're willing to lose to achieve it. A good ratio can make the difference between a profitable career and one filled with frustrations.
Risking 100 to gain 300? Sounds logical. Risking 500 to gain 100? Not so much.
Define your risk before entering. If the ratio doesn't convince you, don't enter. It's that simple.
Risk management is the foundation of any solid strategy. It's not about always being right, but about winning more when you're correct and losing less when you're wrong.
Think in probabilities, not in emotions.