Risk to me is the possibility of losing money. Though I can’t avoid it completely, I always try to minimise the risks by risking only 1-2% of my total capital. Moreover, applying stop loss orders also helps me to minimize my losses in case the trade goes in the opposite direction.
From what he has written, it’s clear that he is using stop-loss to prevent heavy losses in case of a sharp fluctuation in the price movements within a currency pair. It’s a great strategy that always helps novices, provided there isn’t the problem of much slippage with the broker.
The possibility that your chosen investments will fail to deliver the expected results is referred to as risk. In trading, traders should only risk money which they can afford to lose. Risking 1-2% of your trading capital is a good risk that new traders can take.
Risk is anything that you can’t afford to lose to gain something in return. If you take higher risk, you might get high returns. But it also means that you might lose big if you’re not managing risk.
I agree with you, risk is basically everywhere in forex, you just need to take a chance hoping for better results.
Risk is the possibility of losing your money. High risks could lead to high losses, but it can also give you high returns. When you take a risk, you should also have a risk management strategy. So your risk doesn't go beyond what you initially planned.
Risk is when we put money on stake without having any surety whether it’ll make profits for us or we are going to lose all of it. As there are no guarantees in forex, traders should always be prepared for the worst and must take every measure to minimize the impact of losing trade. The best risk management tool is stop loss as it ensures a trader that he/she will never lose more than they are willing to lose.