The odds turned in your favor
Understanding risk-reward ratios and how to objectively assess and manage them is the difference between success and failure.
The vast majority of traders and investors are lead to believe the ability to forecast markets guarantees success. This could not be further from the truth. Markets experience enough quantitative variation so that money can be lost despite having the right overall stance. Managing risk is absolutely critical.
Imagine this situation: you are bullish Crude Oil futures. You enter an aggressive long position. The market dips against you and forces a margin call you cannot meet; you have to liquidate the position. The market subsequently turns up. Your inability to manage the risk associated with the entry point and the position size lead to your account being depleted before the market eventually turned up to do what you though it was going to do. That is rather frustrating isn’t it?
The reality is that successful trading is more a function of your ability to control risk than it is a function of your ability to forecast markets. Our trader development program will show you the mistakes and traps to avoid as well as the good habits to develop so you remain well capitalized and solvent at all times.