Risk in trading and investing

This week will look at what great traders and investors say about risk in trading and investing. Those are just few from many that you can find on trading wisdoms if you type risk in search box

Risk as much as 10%

Risk in trading and investingI am amazed when I talkto novices who tell me they risk asmuch as 10% of their capital on a trade! Well I did that too. Back in the late seventies I did that, and I can tell you it doesn’t work! Risking 10% of capital on a trade is a well traveled road to ruin. – Peter Brandt

 

Substantial amounts of financial risk

There’s no reason to take substantial amounts of financial risk ever, because youRisk in trading and investing should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum drawdown pain and maximum upside opportunities.-  Paul Tudor Jones 

Risk control

Risk in trading and investingThere are a lot of elements to risk control: Always know exactly where you stand. Don’t concentrate too much of your money on one big trade or group of highly correlated trades. Always understand the risk-reward of the trade as it now stands, not as it existed when you put the position on. – Bill Lipschutz 

Toughest challenge in trading

Maybe the toughest challenge in trading – or market risk decisions – is resolvingDenise Shull 1 the conflict over now or later? Should I get in now or later? Should I get out now or later? One can throw a whole bunch of so-called facts at the question and still be no closer to a satisfying or potentially correct answer. – Denise Shull

Traders tend to focus more on identifying opportunity

Dr. Andrew MenakerThe majority of traders tend to focus more on identifying opportunity. Traders may define their risk, but how they respond to the risk in behavioral terms is what ultimately defines their performance. – Andrew Menaker

Igor Marinkovic

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