Rabu, 26 Januari 2011

importance of risk (words from masters)

"the instinct for avoiding unnecessary risk

can be very powerful.

this is a trait that ensures survival under conditions of danger and uncertainty.

but in trading, avoiding risk will prevent you from becoming a good trader, let alone a master.

traders trade in risk; it’s that simple.

master traders view risk as an important and necessary ingredient in any potential trade.

they know that the very best trades are often

the ones that are hardest for most people to make because of the perceived high risk.

the very fact that a trade is difficult to initiate

makes it less likely that others will also make that particular trade.

the lack of a large number of traders taking a similar position

makes it much easier to make money during the subsequent price movement."

- Curtis Faith

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