Does Risk Management Really Matter When Trading?
Is risk management really now something to worry about when trading? Well, it’s actually one of the most important things and can even be a total game changer in your trade career. The more risk, the more your potential reward is. Risk is not a one size fits all concept, either. The point of risk management is to attain balance.
- Fail to respect risk and position sizing and you will have a short lived trading career
- Even experienced traders should be constantly refreshing the basics
- The definition of risk is the probability of losing money or trading capital
“The fact is, without enough money or trading capital, a trader is bankrupt, and that’s an ugly word”