The meaning of risk. What does risk mean to you?

Risk means the probability of undergoing a loss for me.

 

In other words " It is the presence of what you are not certain of".

 

For me risk portrays the amount i may have to incur by investing in some asset. And hence i never risk more than i can afford to lose.

 

Risk is the fear of losing.

 

If so then it would be difficult to quantify your risk.

As a trader I want to be able to define my risk so that can rationalize, in my mind at least, if the reward is worth the risk.

A coin flip for a couple bucks is a risk I would take but I wouldn't flip a coin for my entire portfolio. Granted it is fear of losing that governs my decision.

 

To be brave you gotta' be scared...my trading improves when I respect money.

Mechanical trading somewhat removes the "pain of losing" that gets etched in your soul when you have followed your system.
Es

 

Exact opposite for me; I'm a chicken. When wining or losing doesn't matter, trading becomes so much easier.

A mechanical system with a defined risk (I'll risk 1% of capital on a trade) and a strategy with a proven edge, allows one to fearlessly make trades, knowing in the long run the system is profitable.

DD

 

No risk. No gain.

 

I know what it is not: Volatility.

 

Risk for me is something which if not taken care of, can part me with my funds forever