CONTROLLING RISK IN 2012

Sean Seshadri

CONTROLLING RISK IN 2012

Everyone knows that trading has

significant risks attached to it. However,

anyone who has achieved wealth in any

kind of investing has had to take risk to

get ahead.

Most people will take on too much risk

when they start to trade because they

have never been taught correct portfolio

management and what markets to trade

based on their current financial status.

This is just one of the reasons why

people fail among discipline and not

having inherent instincts which can be

learned over time.

CONTROLLING RISK IN 2012

There are day trading limits that one

should be concerned with first. For

example, one needs to have over 25k to

day trade stocks or options multiple

times intraday. One should focus on

how much they are willing to risk on an

individual trade.

CONTROLLING RISK IN 2012

You can risk 10 cents on a forex trade or

1,000 dollars. When someone starts they

should first practice on a virtual account

before they feel comfortable using the

brokers platform. Then they can slowly

practice risking a smaller amount per

trade.

CONTROLLING RISK IN 2012

CONTROLLING RISK IN 2012

If they are consistently profitable then

one can turn up the volume when they

are comfortable. This is different for

everyone but this is a way that you are

doing the right things to mitigate risk.

CONTROLLING RISK IN 2012

With this said people being people will

still do the exact opposite and still fail as

emotion is a big factor in trading and

limits people from being successful.

That is the reason should follow these

rules so they can avoid frustration and

can see if trading can work for them.