Risk Tolerance VS Risk Capacity

John LockeGuest Blog, Options Education, SMB Options, Trader Development, Trading Lesson, Trading PsychologyLeave a Comment

To be successful at trading, long term, it’s extremely important that our risk tolerance is in line with our risk capacity. Risk “tolerance” has to do with the amount of draw down we can withstand prior to the loss psychologically effecting our trading. Risk “capacity” has to do with the amount of draw down we can withstand prior to the … Read More