Risk management

Hello dear Friends ,In this article you will not find any kind of analysis of financial instruments or markets.

What I wish to discuss concerns an obligatory stop in the activity of traders or rather the comparison with the worst enemy of our operations: ourselves when begin to trade we are full of high hopes and we dream to become rich in a few months thanks to this activities.

We are elated with our first operations into profit, convinced after a few weeks of being already arrived and have it figured out.

Then suddenly the first losses start occurring, and presuming to know the market we begin to use a completely wrong way of working and thinking destroying our first capital and our beautiful wealth hopes.

We blame everything when the truth simply is that it is very difficult to admit we are the ones to make those choices that led to losing everything.

Especially in this part where we have many events in the economic calendar.
It is not possible to trade and do not expect to capitulate on occasion, even when the accumulated experience is so great, even if the forecasts are studied in detail, even when the position seems to have closed for a profit of 100%.
The trader who believes he can never suffer losses as a kind of all-powerful Guru of the financial markets, will never be a good trader, so it is always good to put the risk of loss that may affect its capital account .

However, to avoid the opposite risk, to those who think they do not earn anything for fear of losing money.

And it required a little of initiative so that no one can ever guarantee anything for sure, but the fear of losing their money invested must never be stronger than the desire to make money and profits.
But not all evil comes to harm and we can learn from these serious mistakes.
When we work in the markets we should always remember to control our emotions because feelings in this activity only lead to harm, both positive and negative.

We have to be professional in trading and understanding where our analysis is wrong, a good money management and self-control will pay off.

In the situation that I have described you will recognize many traders, because this mistake happened to almost all those people who started working on the markets.

Having leaks in the online trading is normal but even more important is not to lose control of what we’re doing. Have respect of your money and take the trading not as gambling but with all the respect it deserves, namely that of entrepreneurial activities.

Risk management is the basis of every trader, both beginner or experienced!

In conclusion I wish everyone a great job and good luck.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *