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Risk-taking isn't simply a trait; it's a philosophy.
Many traders want to grow their trading business, but they don’t know how to do it safely. Once you are profitable and can differentiate between the quality of your trades, you want to consider working on your ability to size.
Some traders stick to their comfort zones even when the right opportunities arise. Even though they have the data to know that their A-setups offer better odds, they get scared and end up using the usual risk, feeding their risk-averse tendency.
Taking risks is a muscle that can be strengthened; you just gotta take the first step out of your comfort zone.
Being a risk-taker doesn’t mean you blindly seek risk in all market scenarios; it means that your range of possibilities increases, and with that, you can be more flexible: you can be risk-averse when the conditions aren't favorable and press harder when everything is well aligned.
Risk-takers not only have the data and statistics in place, but they act on them, and that grants them bigger profits in the long run.
In the previous newsletter, we discussed risk tolerance and how you can know your unique risk profile. In this edition, we’ll discuss how you can become more of a risk-taker to leverage your trading results. We will explore the right way of doing it, when, where, and how you should go for it so that you can successfully take the leap and experience faster growth.
*This newsletter is for advanced traders. If you’re a beginner, you’re better off focusing on settling with your foundation before trying to leverage your performance, incurring the risk of spoiling your progress.