The biggest risk in trading is not price fluctuations, but your emotional fluctuations!

Many traders like to watch price fluctuations and their mood rises and falls accordingly, wanting to sell one moment and buy the next.

Price fluctuations are the natural state of the market; whether you watch or not, it will always be this way.

The biggest risk in trading is not price fluctuations.

There are two main risks in trading:

The first is entering a position without setting a stop-loss. If you encounter extreme market conditions, you could face significant losses or even a margin call. Just experiencing this once is enough to make you reconsider.

The second is not following trading rules when entering and exiting positions, taking risks to enter and failing to exit at the right price.

Entering a position without caution is likely to result in losses, and the harsh market will let you know how much.

Failing to exit at the right price while hoping for luck and continuing to hold a position will most likely lead to losses. Even if you occasionally make a profit, it cannot offset multiple losses.

For traders, these two factors are the biggest risks in trading. If they cannot be resolved, trading results cannot be stable, let alone achieve consistent profitability.