Kardec Trader argues traders should focus on risk management before chasing profits. Ask yourself what you can lose, use stop-losses, and journal your trades. A $20k gain might look good until you realize it came from risking $30-40k.
This is where we shift our mindset, right? We start focusing on becoming better traders and then money shows up automatically. We don't go into trades with oh, I'm gonna make this much if I'm right or when I'm right. No, go into every trade. What is my downside? How much am I risking if you are right on a trade? Well, what did I risk to make this? Did it make sense? And there's a lot of times, guys, for myself, I've had days where I literally had a thirty or forty thousand dollar day and I go back to that trade and I journal and I recap and I go, well, based on my stop and based on what I was gonna risk on this trade, I. 20,000 to make 20,000. That's not sustainable. Okay, well that's not a good trade. Even though I made 20 grand, it's not a good trade. And, and we have to be honest with ourselves with these type of things. So I highly recommend go back, journal, journal all your trades, look at where your stops were, look at if you were wrong, do those stops make sense? And if they do make sense, then look at the outcome of the trade.
