Kardec Trader explains why most traders fail: they ignore being wrong. Without position-sizing rules and loss limits, a few bad trades wipe your account. The real edge is assessing how much you'd lose on each trade and protecting your ability to stay in the game.
Traders don't like to factor in the idea of being wrong. So having no risk management strategy in place ultimately puts you at a disadvantage. Imagine you enter the market with no proper risk management strategy. A few bad trades can ultimately wipe your account out. So what you want to do is you want to flip the concept where every trade you look at, you start paying attention to hey, if I am wrong in this trade, how much will I lose? And how much am I able to lose based on my account size? Once you have that identified, your your job then becomes to make sure every single trade you take moving forward allows you to stay alive in the market for as long as possible.
