Every time a trader takes a trade, that trader takes on risk.
Risk must be well defined and understood.
This means that you must know why you are making the trade and you must know at what point during the trade that you will get out.
Most people in the market do not look at each situation in that manner.
A trader must understand that there are underlying determining factors that cause fluctuations in the market; therefore, they may decline or gain momentum over a given period of time.
A trader has to know, before taking the trade, at what point they must get out? Are you prepared to stay in for the long haul if it declines hoping that it will recover in order for you to gain a profit? What if it doesn't recover after declining? Are you prepared to take the risk of losing even more than what you invested, both financially and mentally? This is why gaining knowledge and expertise in trading can benefit you as a trader.
Learning about not only the psychological aspects of trading and how to prepare for such an event, but also learning about how to analyze the market can be beneficial to you as a trader.
Our educational model changes the way a trader thinks of each trade.
This is one of the things that give our traders the edge over the competition.
From beginner trading techniques and information to those that are designed for the more advanced trader, our model covers all of the points that you will find valuable in understanding "risk" and how it is related to the markets.