Why should we pay attention to risk control in trading?
If you tell me today that your trading has multiplied several times in a month, and from 100 to thousands or even tens of thousands in three months, I will not envy you, because I know that this thing will not last long
Because risk and reward are proportional, today you can multiply several times in a month, which means that your risk is very large, so you can get such a large return. Why don't I advocate using such a large risk to trade, because our wallet will always have only 100%. Today your trading funds have increased from 100 to 1000. Today, as long as your risk control is still very large, your funds will return to 200 if it drops by 80%. I may not get that point when I say this. Let me do a simple math problem for you. Today you have increased from 100u to 1000u. In fact, you have made an overall profit of 10000% (10 times). But today your funds (100 0u) only needs to decline 80% to return to 200u "So the cost of losing is always greater than the cost of winning" So what is the real "power"? If you tell me today that you can earn 10% return for me every month, and at the same time control the maximum loss within 10%, in fact, you are already very powerful, because you can earn 10% every month while controlling the risk to a short 10%, that is to say, I will only lose 10% of the total funds in exchange for unlimited returns. Today in the world of trading, slow is fast. If you do trading to achieve the so-called wealth growth quickly
But if what you do is wrong, you will lose it even if you achieve financial growth in the short term, but if what you do is right, you will only grow wealth a little slower than others, but what you do is right, with the "compound interest" the eighth wonder of the world, your wealth will grow faster than them in the end.
