Trading and investing is all about probabilities. You can be extremely certain of a certain move happening, but does the potential loss weigh up against what's left to win? Maybe you're risking 10% to win 2%, that means your confidence/success rate needs to be 80%. Thinking this way in risk/reward before and during a trade is key in managing your risk properly and in identifying which spots are worth it and which ones are not. If you find yourself taking positions without exactly knowing what you're targetting for or without a clear invalidation level, you're at risk of taking the wrong trades and inflating losses to large amounts while the upside might not even have been worth it. Always keep this in mind. Each has their own trading style & strategy but risk/reward should always be one of the leading factors. How well you determine these, is what makes the difference in skill between traders.