Risk Is Defined Before Entry

Most mistakes in trading are made before a position is opened.

They are made when risk is left undefined, flexible, or emotionally negotiable. Once capital is exposed, the mind begins to justify, rationalize, and delay decisions that should already have been made.

Defining risk is not about choosing a stop level. It is about deciding, in advance, what outcome invalidates the original thesis—and accepting that outcome fully.

If you do not know where you are wrong, you do not know what trade you are in.

The market does not punish optimism. It punishes ambiguity. Clear exits create calm execution. Vague exits create emotional management, which eventually becomes loss amplification.

Good trades feel boring because the difficult decisions have already been made.