Risk management first controls the “loss on each single trade,” then considers returns. Before every trade, write down clearly: the entry rationale, the invalidation conditions, and the maximum loss percentage. Don’t go all-in just because you’re optimistic, and don’t average down to “make it back” if you’re losing. A simple rule: keep the loss on a single trade within 1%-3% of total capital. If losses continue, reduce position size—stay alive first.