Can anyone tell me what brings risk to the market? I am a little confused when it comes to risky or a non-risk approach.
First, there’s no such thing as a non-risk approach. Every approach has some form of risk, unless you’re doing pure arbitrage (and even that can have some risk, depending on the approach).
As for what brings risk into the market …
The sources are numerous. Essentially, though, they all tie in to uncertainty about future events. Prices now generally reflect what the market expects to happen in the future. Anything that influences those expectations is a source of risk.
I’m fairly new to forex but a long time options trader. I would say Risk is most defined by the traders mindset. If your trading to try and get rich quick, get some losses back or just plain angry trading, then your probably using too much leverage in order to make money fast which leads to ultimate destruction.
My opinion is trading should be a mindset of sticking to your trading rules, not over leveraging and just grinding out small but steady returns over time.