Risk management is the key
Tuesday, 18 November 2008
The very common reason for destroying your deposit is taking risks too high. There is a limit of risks your strategy can afford, and it is usually way too lower that you’d like to think. So when you’re taking leverage just 2 times higher this limit, you’re turning profits into losses. Even if your strategy itself is good. It may work fine on lower risks.
So don’t be greedy. It’s too expensive.