Written by Mike Elvin
The risk that every trader must take to make profits: Taking financial risk
There is always a possibility for the investors and traders to lose money that they invest on a stock or a particular kind of market. This is the risk factor associated with trading and stock markets. Despite this threat investors and traders take the risk to earn profits. This is called as taking financial risk when you trust your instincts and invest in stocks as traders.
Financial risk taking in trading
Financial risk taking is all about decision making which differs from one trader to another. What promotes traders towards taking financial risk? Basically there are two theories that explain a trader’s need to take financial risk. The first one is the undifferentiated arousal that is linked to risk seeking as well as risk aversion. The other hypothesis is due to positively aroused feelings that ate linked with expectations and anticipation or excitement involved with risk taking.
Why traders need Taking financial risk?
Taking financial risk is the book that has a lot to offer traders simple systems and skills that increases their competency in risk taking to amplify their trading profits. As a trader, your main goal is to make financial decisions that will help them increase their trading profits. The book covers factors that influence and have profound effects on taking financial risk like emotions, motivation, risk assessment, mathematical anxiety, etc.
The book helps you to balance emotions and trading strategies
Many analysts contradict the influence of emotion in trading and risk taking where some are of the opinion that t is a disability while some regard it as a functional asset. This book briefly covers such topics and plays an important role in risk management in taking financial risk.