Without risk there is no reward

Risk is what everything revolves around in investments.

Risk management is the most important part not only in defining an operational strategy,

Whether it is very short-term such as scalping,

Or that it is medium or long term, such as swing/positioning trade or investments lasting years.

Risk management is also an important part of our psychology.

What is our risk appetite?

Basically, if the trading operation we have run goes wrong, how much are we willing to lose?

What is the percentage of capital we want to allocate to a given operation?

Obviously there is no general answer to these questions, because everything is based on our mentality, on our psychology, on how much we are willing to put at risk, on how well we sleep at night knowing that we have a more or less high % of risk on the market.

Finding your % of risk depending on the type of operations we want to do is the key on the financial markets.

And how is this one?

Studying,

Gaining experience in the market,

Knowing yourself,

Learning about your risk appetite.