Risk Management Before Entry
Before entering a trade, I want to know where I'm wrong.
Many traders focus on the target first.
They calculate how much they could make if NQ moves 20 points in their favor but haven't decided where the setup becomes invalid.
A more disciplined process starts with:
What is the trade idea?
What price invalidates it?
How much money would the stop cost?
Does the potential reward justify the risk?
Does the position fit my account rules?
The stop should reflect the setup and your risk limits, not just a number that makes the potential profit look attractive.
Protecting capital keeps you in the game long enough to learn.
#RiskManagement #NQTrading #TradingPlan