RiskThe 5 Main Risk Associated With Losing
Being a trader means knowing how to handle risk, optimize winnings and limit losses, to be profitable on the markets you do not have to make mistakes.
There are 5 mistakes to avoid absolutely:
Wrong Money Management
If the relation between the available capital and the single minimum investment isn't correct, period made by a consecutive losses could damage your capital and put you in a difficult situation of traction.
Poor Quality Broker
If the broker you have chosen isn't trustworthy it may happen that your winning performances could suffer a decrease... even few percentage points could make you collect losses and put you in difficulty.
Uncontrolled psychological aspects
If you don't use a dose of patience, self-control and acceptance of your losses on your daily trading, it may happen that a negative day will bring our behavior to put our capital at risk.
Missed Balance of more strategies or signals
If only a single strategy or a single signals provider are being used, when there's a negative period we will be suffering a serious blow.
If instead we start using different strategies or signals the risk will be fractionated and the possible drawdown be lower.
Wrong bonus evalutation
Accepting a bonus puts you on the wrong psychological condition because it deceives the trader making him/her believe to have money he/she really hasn't.
Following the bonus conditions means pushing over your own trading risking to lose everything.