Ok so risk, not touched upon too much. How do you assess it? How do you cope with it? How do you manage it? Those questions seemed to have been on my mind lately so I’ll take a nice dive into them. Risk seems best when over measured. It seems all to well that things don’t go the way you want them to, they tend to fall off the beaten path. You might even say those that head toward this path tend to find them, but that�s for another time. Anyways over measuring risk is mainly how to deal with losses when your numbers tend to slip from that grip of yours. It could be said and has been said that trading can be compared to driving, whether you take it at 100 miles per hour or 1 mile per hour, you�ll get there with the same tank of gas. This seems true for stops, as you try to optimize you realize that all your plans are skewed the results even anger you. The truth is that IMHO there is a max to every level of every risk/reward ratio, I do not know it, and I will continue to look for it but for now I�ll keep the one that works for me. Assessing risk comes with a plan, but the planning part is not important it�s how you plan. Study, gain experience, ask questions, and make mistakes, and you will know how to assess risk. I�m always open to money management topics, wether it be trading or not, they seem to help me in some way with my method. Since not all methods are the same risk must be assess differently along the same plain(contradictory?). If you assess risk with a different view but hold the principles to assessing risk it should work. So how do you cope, well that�s knowing the risk and realizing if it works or doesn�t. All to well psychologically you are at war with yourself, but knowing the risk through assessment and studying what the risk is will allow you to cope. Managing it can be the same coping, you must assess it. So really there is only one question, how to assess risk? Now of course these are just my thoughts all are welcome eh! And for a final note just remember knowledge is a great way to cure fear be it specialized or not. Never give up seeking more knowledge.
Best, have a good one and later eh!