blog

What are the risks of trading?

A general rule of thumb is the higher the risk the higher the reward. Can this philosophy be considered for all of the time in the financial market? Risks can come in many shapes and forms but what makes trading risky?

By resorting to the definition in the trading world. Risk is the potential that your chosen investment may fail to deliver your expected or perceived outcome. This may result to getting lower returns than expected, or losing the capital invested.