Paun British / Franc Swiss
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GBPCHF: A Lesson in Money Management Over Perfect Setups

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Came across a textbook short setup on GBPCHF on the 1H recently. The price action was within a defined range, structure was bearish, and it was signaling a potential entry.

However, the trade was a pass. Why? The stop loss was simply too wide for my account size, creating a sub-optimal risk-to-reward ratio that fell below my personal 1:2 minimum rule.

This is a reminder that a good technical setup is only one part of the equation. The real discipline is in the money management—calculating the position size and risk before ever entering a trade. Sometimes, the best trade is the one you don't take.

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