risk is everywhere in this market place so we the traders should develop our risk management first of all.
Risk. What is it really?
- Thread starter marketpugilists
- Start date
It's all in your head. A well-planned strategy and a positive attitude can overcome any obstacle including risks
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Good points.
But some one here noted road risk;
so that very real risk of life + death is very time of day + day of the week specific.
There is risk involved in trading since sometimes a loss is unavoidable, but the risk may be minimised by knowing how to pick the correct time frame and price to enter the market and where to quit it.
True, that is why risk management is extremely important in trading. At times, it can save the trader from loosing everything. The risk return ratio, should always be maintained.
Risk in trading is the probability of losing part or all of your initial investment which can lower the morale of the novice trader. Traders may use stop-loss orders or hedging strategies to reduce their risk exposure, but you are solely responsible for the amount you pay to enter the trade. You cannot lose more than your capital deployed so always set limits and follow risk management.
to manage risk is really a great skill , and to be experienced about this is a long time approach , so beginners lost interest after passing sometime.
i have seen sometimes after having most powerful risk management , the result of trading be useless , because market is so much volatile and there is no one can predict it with certainly.