Risk Management - Amateur Traders vs Professional Traders
Amateur Traders don't give much importance to risk management. Many of amateur traders are under capitalized, as such they use excessive leverage to achieve their goals resulting in taking higher risk than normal. Majority of them don't place their stop loss beyond a technical price barrier, but use some arbitrary stop-loss, which price doesn't respect very often. They give too much emphasis to an individual trade rather than a series of…
Amateur Traders don't give much importance to risk management. Many of amateur traders are under capitalized, as such they use excessive leverage to achieve their goals resulting in taking higher risk than normal. Majority of them don't place their stop loss beyond a technical price barrier, but use some arbitrary stop-loss, which price doesn't respect very often. They give too much emphasis to an individual trade rather than a series of…