WHAT IS RISK MANAGEMENT
Risk management is the strategy applied in minimizing an unfortunate occurrences.
It’s actually good to take risk, because when you take risk, then you are on your way to becoming a successful man.
I’ll suggest you read my previous post, it’s a nice one actually.
And any article that teaches you on how to take a risk but ignore the aspect of risk management is not a complete article.
I so much love trading in that it teaches a lot of lessons. When I say lessons, I mean real life lessons. So I will be relating trading with real life situation.
just follow me as I write.
So risk management is the most crucial aspect of either Trading or any form of financial risk.
This remind me of my bitter experience i had in the forex market, I was taught how to trade the forex market but my tutor ignored the aspect of risk management, at first I thought he doesn’t want me to know what risk management is all about but I later realize he doesn’t have the idea.
So we ignored the aspect of risk management, I was a newbie, all I wanted was to win all the time.
So I started trading on demo account and sincerely I made a lot of money from trading on demo, so I thought that was how it works until I decided to move on to my real account, emotion set in and I blown off my account. I never gave up, though I’ve not been able to go back to trading because I’ve not been able to get enough capital to start again.
So I went extra miles to learn about risk management. Though I am not an expert at the same time I am not an amateur.
So when taking risk, take a very good look at it in both direction, ask yourself questions like, if you’re to loose, will you go bankrupt? can you bare the lose, how much can you afford to loose? Ask yourself series of questions, answer those questions and move on.
CONCLUSION
So don’t be afraid of taking risk, and always apply risk management, with risk management, you’ll stay in the game for a long period of time. And with patience and without greediness, trust me, you’ll make it big.