top of page
Writer's pictureErik esInvests

Traders MUST Take Risk

There is no reward without risk. Some of the people who achieve the largest rewards have taken correspondingly large risks. People who try to start their own business spend extensive time not making anything trying to make something. They may or may not make it, many don’t. Those who do make it, took the risk, persevered, earned the reward. I am too conservative to potentially risk everything for a potential reward.

As traders, our primary job is to be risk managers. Without an intimate understanding of risk, a traders tenure will very likely be limited. On the opposite, traders who are completely risk averse will not get anywhere and likely will end up net negative due to poor expectancy.

Like most facets in life, trading requires balance. Finding proportional risk to reward is how we find success. Do not be afraid of risk. Do not be flippant towards risk. Once you find the balance, that’s when our capital begins to grow.

12 views0 comments

Recent Posts

See All

Don’t Trade

If you don’t have a written plan. The goal of this post is to share personal mistakes in my early trading to hopefully encourage others...

Path to Options Proficiency

For the new traders, whatever you do, do NOT allow the disenfranchised internet trolls dissuade you from learning and asking questions....

Options Trading for Wealth Development

Like most, I started trading to create wealth and change the trajectory of my life. I started in 2007 with options and learned a really...

コメント


Post: Blog2_Post
bottom of page