We all know the saying, "No risk, no reward." In markets especially, we cannot make money if we're not willing to take risks. However, my experience is that the greatest problem is not with taking risk, but with the intelligence of risk taking. Traders take risks that, ultimately, they are not emotionally prepared to handle.
Risk taking becomes unintelligent when the amount of risk we take is ultimately more than we can handle, either emotionally or business-wise. The trader who routinely gets s…
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