Why Traders Risk Their Money

Why Traders Risk Their Money

Why Traders Risk Their Money? This is something I believe is built in, something very primitive and ancient. As a traders we take risks because we have little patience. We are the providers, the hunters, and the breadwinners. Who will bring home the bacon if we aren’t willing to risk our lives? But it’s in our DNA, and something (honourable as it is) must be balanced against our ability to rationally reduce risk and remain profitable. Here are a few options for bringing the bacon home without losing the farm.

  1. Don’t trade until you’re sure you’re ready.
  2. Before you take on professional trades, improve your knowledge.
  3. Don’t risk more than 1% of your trading capital on more than three trades at once. This will protect you from insurmountable drawdowns.
  4. When it comes to collecting your winnings, don’t put it off.
  5. Don’t be afraid or greedy when it comes to cashing in.
  6. Don’t get too excited about your winning trades. Allow your winners to run and learn to trust your signals.
  7. Allowing your ego to run the trade is a bad idea. You will be successful in the long run if you concentrate solely on the profits.
  8. Within your time frame, trade with the trend. Don’t try to stop it.
  9. Concentrate on the big wins while tempering them with minor setbacks. This is the key to long-term trader success.
  10. Trade with a strategy in mind, rather than relying on your emotions or the opinions of others.
  11. Seek the advice of seasoned traders. Getting advice is not something to be ashamed of.
  12. Rather than making predictions about the future, trade a strategy based on historical price movements.

That’s Why Traders Risk Their Money

Good Luck Traders. Always Trade With Risk Management and knowledgeable strategies.


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