There is no one who can trade without any risk at all except if you’re trading with demo account because you’re using virtual money so it’s no problem at all with you when you lost because you don’t lose in reality. No matter how good your analysis, it won’t give you 100% accuracy in analysis about what will happen in the future. There is possibility of loss although you had high confidence that your analysis was close with reality. So, traders need to prepare good money management and risk management to prevent big loss in single transaction.
Exactly! I am reading Master the Markets and one thing said in there that I really like is that “a succession of small losses is looked at as a business expense” I think that is pretty spot on! It is the price of doing business. There is shrinkage in retail, write offs by lenders and so many other ways of taking small pieces of the profits. Even overhead such as utilities can be counted as a calculated loss. It is all in the perspective of preventative maintenance by good money management and discipline in a solid (not just picked up from the internet) trading plan
I am agree with you. The risk in trading is depending on trader’s choice to risk how many percentage from equity in each transaction. It has close relationship with lot size which is used and placing risk management (usually Stop Loss) in every transaction. There is no one who can avoid from risk of loss in trading but you can control the risk so it’s important to each trader to prepare good money management and risk management in every transaction.
When a trader is risking more than he/she should, that is a choice of his/hers. No one is forcing you to any risk in trading. It is up to you, so I agree with thelastbear; risk=lack of knowledge.