We must attempt to maintain adequate capital during losses With less capital the danger is higher and therefore the amount of risk can't be reduced so as to trade you would like to plan accordingly. Trading doesn't depend upon knowledge and knowledge The market must be understood before the transaction and risk management must be properly determined Business usually depends on the market.
Money management matters in this kind of industry if you are into trading business you need to analyze the market very well,the more deeper you understand the higher chance of surviving.
It's your good judgement and assessment that will allow you to compensate from this business, as the this industries depends
from how traders and investors reacts from every situations.
Well, by extension, everything about life is based on probability because no one actually knows what tomorrow holds. If anyone can clearly tell the future, then that person holds a supernatural power and won't be living on guesses and probability. Trading is business and business is life. So, it isn't farfetched to say traders indulge probability and guess work while trading. There is no certainty to it. However, to navigate that mucky waters of probability, most traders rely on Technical Analysis (TA) as a compass, which is preferable to news for me. And to that end I say, yes, trading is probability.
Good point, no one knows what market will bring but having good understanding gives you higher chances to anticipate what will
be the next market trends, you can position your investment and wait for the execution.
