The 50% Profit Trap Most Traders Fall For

Bigger profit ≠ better trade.

Trade B with 50% upside may risk losing almost everything, while Trade A with 10% upside risks only 5%—return shows what you can gain, risk shows what you lose when wrong. Before every trade, check 3 things:

define your downside before your upside, compare risk with potential reward, and adjust your position size to the risk.

The best trade is the one with reasonable risk, not the biggest profit.

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