Before placing a trade, determine the maximum loss you can tolerate per trade—for example, 1% of your account balance. Then, based on the distance between the entry price and the stop-loss price, work backwards to calculate your position size: the farther the stop-loss, the smaller the position; and if volatility is higher, you should also reduce leverage. Don’t temporarily increase your position just because “this time you’re very confident,” and don’t use averaging down to cover up mistakes. Risk management is not about predicting price movements—it’s about ensuring that one wrong judgment won’t wipe out your account.