Understanding Risk and Reward in Trading

The podcast emphasizes the critical balance between risk and reward when entering trades. Entering multiple times in the same trade can significantly increase potential gains but also amplifies risk exposure. Many novice traders approach the market with a gambling mindset, believing that they can hit a significant win without acknowledging the likelihood of substantial losses. This mindset often leads to financial ruin, as inexperienced traders fail to manage their risks effectively and do not allow themselves the necessary time to recover from setbacks.