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

And that is my fear too.

 

Embrace your yellow, man.

 

So are going all in, wheres max risk is 1% or is it 10 positions, each 10% of total capital with 10% stops that are equal to 1% of all capital ?

 

Each position has a 1% risk. If I'm holding 5 positions my total risk is 5% of my capital.

If capital is 100k then I could have 5 positions with initial value of 20k. Calculated risk on each position is 1k or 1% of total capital.

 

Risk is 1/3 of what you need to understand to trade profitably, I.e. Risk, Reward, “Probability

 

Well risk and reward are the same thing,, two sides of one coin, so more like 2/3

 

For myself taking on risk means an opportunity to make $$$. I see risk as a positive thing. However, in trading it is a calculated risk, assumed in the right context, that will render positive movement toward the objective; making money.

 

It's a surefire way to spot a beginner, when they equate risk with loss..
there is good risk and there is bad risk, you take one and avoid the other

as for "reducing risk" or "mitigating risk".. don't play in the first place then!

 

1 of 3 very closely interrelated things I meant

 

it is the situation in the market where an trader can face the loss