The concept
Risk is the possibility of losing money or of outcomes differing from expectations. In trading, every position has risk.
Why it matters
You can't control outcomes, but you can control how much you risk.
How markets interpret it
Professionals think in terms of risk first, reward second.
Key takeaways
- Every trade carries risk.
- Control risk, not outcomes.
Knowledge check
What can a trader actually control?
Key terms · hover or tap for a definition