1.- Not knowing what you are doing is risky.
Do you think there is the same amount of risk involved in a routine surgery when performed by a butcher or by a certified specialist? What is the difference? Knowledge. It's the same when trading currencies. You need to know what you are doing or you are going to lose money.
2.- Not taking decisions is risky.
Many people never take important decisions hoping to avoid risk. Sometimes when you think you are taking the safe path you are increasing your risk.
Did you know, for example, that if you save your money in the bank there is a 100% chance to lose some? Huh? Yes, the interest the bank pays you is always lower than the inflation. That means your money is losing value every day; at least for you, cause the bank is making profit taking risks (with your money).
3.- Acting out of fear is risky
Some people trade to gain, they expect a profit. Some others trade not to lose, they fear losses. Do you think you will be able to make wise decisions on your investments when you are acting out of fear? Will you be able to stay focused and trade in a disciplined way? You should never let your emotions cloud your judgment when you take decisions with your money or you will lose; and not only in the forex market.
4.-Acting recklessly is risky
Some people trade as if they were on a casino and then, when they lose, blame it on the market. If you want to become rich overnight your account is at big risk. The amount of dollars you lose on your account have a close relation on the risk you are willing to take. Most professional forex market traders agree that you should risk between 1%-2% max on every trade. This will allow you to avoid wiping out your account and at the same time help you to make some dollars.
Do you think there is the same amount of risk involved in a routine surgery when performed by a butcher or by a certified specialist? What is the difference? Knowledge. It's the same when trading currencies. You need to know what you are doing or you are going to lose money.
2.- Not taking decisions is risky.
Many people never take important decisions hoping to avoid risk. Sometimes when you think you are taking the safe path you are increasing your risk.
Did you know, for example, that if you save your money in the bank there is a 100% chance to lose some? Huh? Yes, the interest the bank pays you is always lower than the inflation. That means your money is losing value every day; at least for you, cause the bank is making profit taking risks (with your money).
3.- Acting out of fear is risky
Some people trade to gain, they expect a profit. Some others trade not to lose, they fear losses. Do you think you will be able to make wise decisions on your investments when you are acting out of fear? Will you be able to stay focused and trade in a disciplined way? You should never let your emotions cloud your judgment when you take decisions with your money or you will lose; and not only in the forex market.
4.-Acting recklessly is risky
Some people trade as if they were on a casino and then, when they lose, blame it on the market. If you want to become rich overnight your account is at big risk. The amount of dollars you lose on your account have a close relation on the risk you are willing to take. Most professional forex market traders agree that you should risk between 1%-2% max on every trade. This will allow you to avoid wiping out your account and at the same time help you to make some dollars.
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