Thursday, January 28, 2010

Importance of risk taking in stock trading

stock market risks are of 4 types:-

1) blind, with stop loss
2) studied risk at extreme point, without stop loss
3) studied risk at extreme point, with stop loss
4) blind, without stop loss

the first is Immaturish, the second is Amateurish, the third is Professional, while the forth is outright Suicidal.

risk is always there but at a certain point it is the least. that is the point where risk should be taken, and must be taken.

Without taking risk u can never win big. rather u can hardly even win. when the risk is zero, everyone is noticing that. Even punters are! It is a trap!!! Profit is maximum when risk is there and so is uncertainty.

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