Why I Calculate My Risk Before Looking at Potential Profit

It's tempting to focus on how much a futures trade could make.

But before thinking about the reward, I calculate what happens if the setup fails.

I identify the invalidation level, determine the stop distance, calculate the risk per contract, and choose a position size that fits my limits.

Then I assess whether the potential reward justifies taking that risk.

This sequence keeps excitement from driving the decision.

A trade is not attractive simply because its profit target looks large.