Trading is fundamentally about balance—knowing exactly how much you're comfortable losing versus what returns you're chasing. Your conviction only matters if it's backed by a position size that won't destroy you. The real question isn't whether you believe in a trade; it's whether you can handle the downside when things go sideways. That's where most traders get it wrong. They stack their chips on high-conviction plays without doing the math on what happens if they're wrong. The winners? They've already made peace with their maximum loss before they ever click buy.