What is Risk

Disciplined Trading Strategies · Feb 1, 2024 · 10m

When a trader says that a trade was “risky”, what exactly does that mean? I hate to say it but in the absence of any other information it means that the trader is very novice. Risk can have a lot of meanings, and I want to review each of those as they are critically important to your trading. Maybe it’s just semantics, but saying any trade is risky is very difficult to define. The true definition of a trade being risky, is not anywhere near how most traders would define it. Without understanding all the implications of risk, you will lose money quickly.

Here are the Charts to follow along…