A short YouTube lecture by Kardec Trader advising traders to prioritise downside protection before entering any trade. The speaker warns against focusing first on potential upside gains and recommends pre-defining a stop/loss level and acceptable loss amount to preserve trading performance and confidence.
Always protect your downside. Before you enter any trade, make sure you have a level where you're like, if this trade goes to this point, I know I will be wrong, and if I am wrong, how much will I lose and how much am I willing to lose? A lot of traders do not do this. The first thing they do is when they get into a trade, they start looking at the upside. Well, if this trade goes right, or when this trade goes right, I'll make 10,000, I'll make 5,000, I'll make 500. That's the worst approach to have as a trader. That will ultimately destroy your trading abilities and destroy your confidence. We'll just cloud your judgment. So when you get into a trade, look at the downside and.
