Friday, 9 August 2013

Understand yourself and your risk appetite


One of our associate traders understands his method well, and understands the risk that he constantly undertakes, which is that he can lose all the money in his account anytime, but being prepared for that and being able to trade without emotion is key. I congratulate him on his recent results! I understand that he has achieved returns of 300%-400% within a few months.

Many people think that making money from trading is easy, and they are wrong. Many people also think that making a few hundred percent from trading in a short amount of time is impossible, and they are also wrong. End of the day, it all boils down to what is the amount of risk you are willing to undertake and whether you can take the drawdowns, both financially and emotionally.

As long as you can do that, and do it in a consistent manner, you may have found your niche and your new trading business to be in. Understanding your risk, margins and leveraging is key to trading successfully, WHATEVER your strategy may be.

If you would like to learn this key, write in to traderbuffalo@gmail.com.

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