When you open a high-leverage trade, the first thing that usually comes to mind is:

“How much can I make from this trade?”

And there’s nothing wrong with thinking about the potential profit.

But there’s another question you should ask yourself before entering:

“How much can I lose if this trade goes against me — and can I comfortably handle that loss?”

Most traders focus on the reward and forget about the risk.

Then, the moment the market moves against them, fear and panic take over.

The mindset should be simple:

Don’t think about the risk after you enter the trade. Think about it before you enter.

Know your potential loss.

Know what you can afford to lose.

And never risk more than you can handle.

Profit is a possibility. Risk is a reality.