Risk management is the first and most important job of any trader

Risk managementRisk management is the first and most important job of any trader. Traders must make clear distinctions between the normal risks associated with any trade and the more extraordinary risks that can potentially destroy a trading account or end a trading career. Many of the psychological struggles traders face come from not really understanding the  nature of risk. The trader’s job boils down to this: assume the correct kinds of risk at the correct times, and manage those risks appropriately; then, assuming the trader is working within a net positive expectancy framework, profits will accrue. Adam H Grimes

Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites