The core of risk management is not predicting price moves, but controlling the cost of a single mistake. You can start by setting: in any one trade, the maximum loss should be no more than 1% of total capital. Then, based on the distance between the entry price and the stop-loss price, back-calculate the position size. For example, with a $10,000 account, the maximum loss you can tolerate is $100; if the stop-loss is 5% away from the entry price, your position size is about $2,000. Don’t increase your position size just because “this time you feel very confident,” and don’t add to positions using borrowed money. A stop-loss is not admitting defeat—it’s limiting a single judgment error to within what you can afford.