October 17 2026

Define Risk Before Entry

Know When Your Trade Idea Is Wrong

Before entering any position, experienced traders define one key level: the invalidation point — the price or condition that proves the original thesis incorrect.

This step comes before sizing. Why? Because risk is calculated from the entry to that invalidation level, not from hope or intuition.

Define where you're wrong first.
Size the position so that loss stays within your risk limit.
Only then consider entry.

This sequence keeps emotion out and structure in.

Explore analytical tools at GCG Finance Analytics.

⚠️ DYOR. Not financial advice.