Trade can be a risky venture but there are some aspects that you have to keep in mind. Keep in mind that those that have more stable income are more aggressive than those who have other obligations. Those new to the trade are often lured in by quick profit so the things to keep in mind are lifestyle, capital, time frame and experience. Above all, remember to trade at your own risk!
- One of the most popular discussions in trading forums is how much a trader should risk per trade.
- Risk tolerance basically tells you how comfortable you are with possibly losing money in exchange for potential profits.
- The problem with risking more money than you’re comfortable with is that the prospect of losing will ruin your trading mindset and keep you from making the right trading decisions
“Those who have stable income or experience in financial markets tend to be more aggressive, while those who have other financial obligations and limited trading experience usually take the less risky road to profitability.”