CONCEPT OF RIGHT RISK

In the article JOB NAMED TRADER, We spoke about a concept called Right risk. In this article let’s speak in depth about right risk.

Right Risk can be called summarized as a Risk taken with a business purpose and not because of emotions. It’s a Risk which gives a net positive return over a period of time. It’s called right risk because you can afford to lose it.

When the trade goes wrong and money from the trading account diminishes it’s often difficult to call it a “right” risk but, if you want make money trading you have to accept the loss when taken a “right” risk and move forward.

You have to account the loss incurred taking “right” risk as business expense. Remember you can’t run an internet cafe without internet which is not free (you have to pay for it). Similarly you cannot be a good trader without incurring loss and consider this loss as a business expense.

The best way to keep risk under control is to keep things simple. Complicated trade setups, tunnel vision, frequent signaling trading system only multiple risks.

To be a consistent and profitable trader always has the right attitude towards risk. It’s those traders who function better as risk managers are rewarded by market.

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