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Accepting risk is what leads to a better trading mindset & overall performance.

Home AnalysisTrade SetupsAccepting risk is what leads to a better trading mindset & overall performance.
Accepting risk is what leads to a better trading mindset & overall performance.

Accepting risk is what leads to a better trading mindset & overall performance.

23 September 2024 Trade Setups

“Trust because you are willing to accept the risk, not because it’s safe or certain.”

When it comes to trading, uncertainty in markets is part of every traders life. By accepting risk in advance puts a trader in a safe place, and help him detach from his outcome & fear of loss. Our survival brain perceives losses as threat which triggers fear based trading. This is how our default limbic system is wired to help us stay safe and survive.

Our survival mechanism is what gets traders in trouble when it comes to trading. We are our own enemy.

Rewiring our emotional & underlying behavioural patterns is a must for every trader in order to be able to trade in an uncertain environment, while staying focused on process, manage risk, and maintain a probability based mindset.

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Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

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Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.​

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