Trading can be a wonderful venture, but it comes with its share of dangers.
One of the primary risks is financial loss.
The volatile nature of financial markets means that everyone suffers loss.
Irrational decision-making is another pitfall; fear and greed can lead to impulsive actions that erode capital.
Overtrading, where traders make excessive trades, often results in losses
Lack of knowledge is yet another issue;
trading without a solid understanding of markets and strategies can be disastrous.
To navigate these dangers, traders must educate themselves, practice sound risk management, and exercise discipline in their trading activities.
Trading will be dangerous if we master real trading knowledge starting from analysis, controlling emotions and so on. Because trading without understanding trading is the same as playing gambling only relying on instinct.
I liken trading to the retail world, where there are harvest periods and lean periods, for example selling clothes, market crowds will increase during weekends and big celebrations, that's the time to make transactions/sell as many goods as possible for more profit but still prioritize the risks. and reasonable margin limits. Just like trading, where there is important news that can move the market in a big way, that's where you can carry out as many transactions as possible by prioritizing risk and a reasonable margin threshold. So the point is, treat trading the same as selling retail.