*Key Principles:* 1. Price moves up or down. 2. Uncertainty reigns. 3. Minimize losses, maximize wins. *Risk Management:* 1. Position sizing = Risk / Stop Loss. 2. Control loss size (skill), not win size (luck). *Trade Management:* 1. Initial reasoning doesn't guarantee outcome. 2. Know when to exit (chip management). *Expectancy Formula:* Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss) *Controllable Factor:* 1. Average loss size (adjust to optimize expectancy). *Uncontrollable Factors:* 1. Probabilities of winning/losing. 2. Average win size. *Takeaways:* 1. Focus on risk management. 2. Accept uncertainty. 3. Optimize controllable factors. 4. Develop a winning mindset. *Remember:* - Trading is a probability game. - Discipline and patience are key. - Continuous learning is essential.