The meaning of risk. What does risk mean to you?

deaddog said:
Exact opposite for me; I'm a chicken. When wining or losing doesn't matter, trading becomes so much easier.

A mechanical system with a defined risk (I'll risk 1% of capital on a trade) and a strategy with a proven edge, allows one to fearlessly make trades, knowing in the long run the system is profitable.

DD
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So are going all in, wheres max risk is 1% or is it 10 positions, each 10% of total capital with 10% stops that are equal to 1% of all capital ?
 
Nobert said:
So are going all in, wheres max risk is 1% or is it 10 positions, each 10% of total capital with 10% stops that are equal to 1% of all capital ?
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Each position has a 1% risk. If I'm holding 5 positions my total risk is 5% of my capital.

If capital is 100k then I could have 5 positions with initial value of 20k. Calculated risk on each position is 1k or 1% of total capital.
 
For myself taking on risk means an opportunity to make $$$. I see risk as a positive thing. However, in trading it is a calculated risk, assumed in the right context, that will render positive movement toward the objective; making money.
 
It's a surefire way to spot a beginner, when they equate risk with loss..
there is good risk and there is bad risk, you take one and avoid the other

as for "reducing risk" or "mitigating risk".. don't play in the first place then!
 
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