Chapter 4 The Longevity of Trading
The goal of trading is not to make a quick buck but to build a sustainable, long-term career. And the key to longevity in trading is risk management.
By controlling your risk, you can absorb losses without getting knocked out of the game. You can weather the storms of market volatility and live to trade another day.
Conclusion
In the rollercoaster ride of Forex trading, risk management is your safety harness. It’s the strategy that keeps you secure as you navigate the ups and downs of the market.
Remember, the goal of trading is not to avoid losses but to manage them effectively. And the key to effective risk management is controlling your risk, cutting it in half after each loss, and gradually increasing it as you recoup your losses.
By adopting effective risk management strategies, you can protect your capital, absorb losses, and build a sustainable, long-term trading career.
