Financial Investing Radio

One time in England, many years ago, I was boarding a train and was loading my luggage and my bike into the luggage car. I had placed my bike there and turned around to get my luggage and the train took off. I chased the train with my luggage in my hand and jumped onto it. However, I could not keep my balance and fell off the train, taking a serious roll on the platform. That is called trading with profit potential, not trading with risk potential in mind. I was clearly thinking, oh yeah, I can make this train...that is called profit potential. In reality, the profit potential did not work out. If I would have traded in that situation with the risk potential I would not have tried to jump on the train and would have lost my bike, but would have protected my capital, in this case my body and potentially it could have been my life. That experience taught me a lot about the markets. We trade RISK POTENTIAL, NOT PROFIT POTENTIAL. The skill that needs to be learned is how to calculate RISK POTENTIAL. Consider the