Most beginners start with the wrong question. They ask, “How much could this trade make?” A better question is: If this idea is wrong, how much could I lose—and am I comfortable with that risk? That is the starting point of risk management. Risk management is not about avoiding losses completely. Losses are part of trading. It is about making sure that one losing trade, or a short run of losing trades, does not take you out of the game. A strong trading process begins with pr