I stopped asking:

"How much can I make from this trade?"

And started asking:

"How much am I comfortable losing if I'm wrong?"

That sounds like a small change.

But it completely changed the way I look at a trade.

When you're focused on the potential profit, it's easy to get carried away.

You start thinking about the big move.
You imagine the perfect target.
You start increasing your position because the upside looks exciting.

But when you focus on the downside first, the trade becomes much clearer.

Where is my invalidation?
How much am I willing to risk?
Is the position size appropriate?
Can I accept the loss without making an emotional decision?

The market doesn't owe you a winning trade.

You can have a great setup and still be wrong.

That's why I don't want to enter a trade thinking about what I need to make.

I want to know exactly what I'm risking if the idea doesn't work.

Because once the downside is defined, you can trade with a much clearer head.

Protect the downside first.

The upside can take care of itself if the setup plays out.

📊 Poll

What do you think about before entering a trade?
$QNT $BTW $SOON