Trying to make money in any market entails a certain amount of risk. That can come from buying a blue chip stock on the New York Stock Exchange or from trading on OTC markets. The difference always is the nature and size of the risk. So being able to manage risk is vitally important as a trader or as an investor. It is arguably the most vital skill to learn when you wade into the financial markets.
Being a trader and being an investor are two very different things. Traders, even though they are smart and focused and diligent, live for the moment. They are going to make money by pouncing on opportunity, never letting the trend get away. Investors, on the other hand, tend to be much more methodical. Which is a good way to make small profits over the long-term, setting you up for success in your golden years.Continue reading