When the risk in trading is justified...

Jamie J.

Jamie J.

Has it ever happened to you that the risk turns out to be successful in trading? How did you manage to convince yourself that such a risk is the correct decision and the right strategy?
 
It is rather that your stat models have to convince you that the risk/trade has a positive expectancy. Risk is just a deviation from an expected return - it can be either downside or upside. Upside risk is very convincing, yes. lol
 
There's essentially 100% risk and uncertainty with every trade; But it's something you have to proceed with anyways.
It's kind of like dating, and rejection.

What else is there to say or to explain about... :confused::wtf:
can_i_give_my_dog_pepto_bismol.jpg
rogue_trader.jpg

That's simply the nature of the game
Trading is definitely not for everybody. Hopefully, you're not just flatout gambling...but have a more...logical, rational, scientific and skillful ability,
 
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No risk no reward..., there's no possibility to trade without risk. So if you're successful in trading, the risk you take is always justified. But sometimes I do stupid things and take on too much risk, but that's just a dumb thing to do really...
 
The risk in trading is justified when

the return is > the risk-free rate of return and accounts for any additional risk plus labour time and operating costs or

the return from trading is > the return of an asset with a comparable risk profile plus labour time and operating costs
 
lovethetrade said:
The risk in trading is justified when

the return is > the risk-free rate of return and accounts for any additional risk plus labour time and operating costs or

the return from trading is > the return of an asset with a comparable risk profile plus labour time and operating costs
More...

The risk-free rate of return is Europe is now negative (-0.4%).
So if your loss is smaller than 0.4% you are already winning! :p
 
Mtrader said:
The risk-free rate of return is Europe is now negative (-0.4%).
So if your loss is smaller than 0.4% you are already winning! :p
More...

Only if it's the best risk-free rate of return available and the return accounts for everything else I mentioned. (I.e additional risk, initial investment, operating costs, return for labour that you could obtain in the marketplace with your skill level etc
 
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The best risk about trading is
a) working for yourself
b) not having to stay apart of the rat race
c) making a lot of money if you're good at what you do
d) having more time to do the things you love
e) not having a boss
 
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