My thoughts on Risk in trading
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    My thoughts on Risk in trading

    Risk comes from not knowing what you’re doing. Never invest in a business you cannot understand. Most people get interested in day-trading currencies/ equities/ futures when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well. For some reason, people take their cues from price action rather than from values. What doesn't work is when you start doing things that you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a currency pair/ equity/ futures contract just because it’s going up. Diversification may preserve wealth, but concentration builds wealth.

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    Risk is bound to be always there in a potential business like Forex. The thing is we need to learn manage this risk and we complete most of our job in Forex trading. If we set profit targets for every month or week then we can determine the quantity of risk that would be most suitable for us. Our profit targets should be reasonable and set with discipline.

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    Risk is the very important fact that we have take guard of it and place it in the first rank in our calculations before we already begin in the trading . so the risk management should contain a very strict rules and tools which may help us manage ourtrades

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    As long as it is forex trading, the risk will always be present, and there is nothing any trader can do about it. Whenever you are trying to trade in forex, always calculate the risk you are taking, and plan the reward too, so that the risk will be lesser than the reward, this is the way to make success in the forex market.

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    that's totally depend upon our interest if we have no sense of a business then we can learn about that business but if we are not ready to do that business then that is a differ thing many people just want to make money with gamble and want to become only luck all the time so that's their own choice what we can do in that case

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    Risk will always be present in any kind of trading strategy if we are not taking any risk then we will not be gonna to make money in forex because in every trade we have to risk, we have to calculate our risk properly in each trade and have to do trade with strong strategy like 1:3 or 1:4 ratio

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    Quote Originally Posted by ericnyamu View Post
    Risk comes from not knowing what you’re doing. Never invest in a business you cannot understand. Most people get interested in day-trading currencies/ equities/ futures when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well. For some reason, people take their cues from price action rather than from values. What doesn't work is when you start doing things that you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a currency pair/ equity/ futures contract just because it’s going up. Diversification may preserve wealth, but concentration builds wealth.
    Thinking about risk in trading can make help you to focusing on your loss dispite on profit when you are opening position. So understand that thinking about risk can make our trading psychology better. If the psychology is in good area, so there is no pressure on trading.

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    It is never possible that you will trade the market without a risk, but you should try to be the wise traders that will make his own trading risk based on how he is efficient in the market. You will risk based on the capability of the trading strategy you are using, and the management you are using to tackle the risk, this is more reasonable for all traders.

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    Rookie rinaji's Avatar
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    Quote Originally Posted by ericnyamu View Post
    Risk comes from not knowing what you’re doing.
    Can you explain this sentence? I think risk is always there in every action even though we know what we should do, we can not free of risk, we can only minimize risk, and we can only limit the risk. Outside of that, I agree with all your opinion. We can not perfect accurately predict the movement of the market, then it means there is a level of risk in each of our actions.

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    If you lose, be patient. If you win, stay humble

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    Registered user snnaky's Avatar
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    [lang=ar]When the dealer you have to know that it does not profit without potential losses or profits without lasting account of these risks and this Anicon needs to have a plan for handling any potential alternatives happened and what to do
    And to be always ready to change the way all flexible depending on events[/lang]

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