Friday, July 8, 2011

the biggest risk


"if you are not able to put on a trade
without the least bit of emotional discomfort
then you have not learnt
how to accept the risks inherent in trading.

this creates a major paradox because
to whatever degree you have not accepted the risk
is the same degree to which you will avoid risk

trying to avoid something that is unavoidable
will have disastrous effects
on your ability to trade successfully.

when you have learned the skill of risk acceptance,
the market will not be able to generate information
that you define or interpret as painful.

learning to accept risk is a trading skill, the
most important skill you can learn."

- (trading in the zone)

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not taking risk can be the biggest risk a trader takes!

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