DANGER

Being a trader is dangerous because:

  • You can lose all your money, and at the same time, that loss can have psychological implications, including suicide in very extreme situations.

Being a window cleaner on a skyscraper is dangerous because:

  • He performs a job where he can fall and kill himself.


Therefore, being a trader or a window cleaner on a skyscraper are two dangerous professions.

RISK

If the cleaner performs his work on a windy day, without harnesses and on some planks, he is engaging in a dangerous job with high risk.

But, on the other hand, if the cleaning is done on a sunny day, with harnesses and a well-anchored scaffold, the danger is the same but the risk is minimal.

The trader, if he trades more leveraged than what his account can handle and without a stop-loss, is engaging in a dangerous job with high risk.

But on the contrary, if he puts a stop-loss on each and every trade, and calculates the amount of money he should trade depending on the total capital he has in the account, then he is performing a dangerous job but with minimal risk.

CONCLUSION: Trading is a dangerous profession in which the assumed risk depends solely and exclusively on the measures taken by the trader in his trading.

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