Get Started - Is Trading Risky?

We are in a new economy, using old means of "investment", the typical of buying stocks and holding long term, IMHO do not really work that well anymore.  Of course there are exceptions, which do not usually apply to the commoners like you and me.

In this new era, I think we should learn how to trade.  And in this way, we can control our investments and make sound decisions.

However, is trading risky?  Yes, it is risky because you can lose money in a very short time frame.  The key point here is time frame.  Most people have the misconception about risk because of time frame.  It is human to prolong a failing business and termed it as not so risky because they managed to stretch it over time.  On the contrary, anything that fails quickly is high risk.

In fact, when you run a business, you do not have control over many issues and you could lose money.  Whereas in trading, you almost have full control over risks and you would lose more than a dime that you planed for.

And versus the old way of buying stocks and hold, if you know how to trade, you can maximize your capital gains, probably by many multiple folds.

Thus, the qualifier is, if you know how to trade well, your risk is very low.