Build a Strong Respect for Risk December 4, 2009 at 4:54 pm
You must respect risk if you are to survive as an investor or a trader. Be- fore you ever place an order with your broker, make sure you calculate the maximum potential risk and reward as well as the breakeven(s) of the trade. This will help you stay in the game so you can achieve your goals. Risk graphs, which are explored in later articles, are important tools for assessing risk and reward.