I used to focus only on potential profit, ignoring potential loss. That mindset led to heavy losses when the market didn’t go my way.
I learned to calculate risk/reward before every trade. If a trade had a potential loss I wasn’t comfortable with, I skipped it. If the reward didn’t justify the risk, I walked away.
I also started using stop-losses and position sizing. One lesson hit me hard: protecting your capital is more important than chasing every opportunity. Losing less keeps you in the game longer, giving you more chances to profit in the future.
