Before entering any trade, I always calculate my risk-to-reward ratio. If I’m risking $100, I want the potential reward to be at least $200 (2:1). This simple habit has helped me stay profitable in the long run, even if I lose more trades than I win. It also forces discipline and stops impulsive entries. Too many traders ignore this and enter trades blindly, which leads to inconsistent results. Smart trading is all about managing the downside and letting the upside play out. Plan your exit as well as your entry.
