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Risk is a key part of the trading process. Accepting risk, understanding its causes, and focusing on managing it are the most important factors for success in managing your trades or transactions. However, most novice and inexperienced traders focus only on profits based on the idea that trading is only a means of quick profit without managing risk. This exposes them to great losses, forgetting the monthly rule that “according to the risk comes the profit.” This does not mean that you should increase your risk in the hope of more profits, as then trading will turn into gambling. Rather, start focusing on protecting what you have and at the same time give yourself a chance to make a profit.
So, the above can be summarized by pointing out that the trading process works by exchanging one thing for another of equal value, and this value is determined based on the strength of supply and demand for this thing. The trading process has developed over the ages, and in order to obtain the same thing, the counterpart differed in each period from bartering for another commodity, to exchanging it for gold or other metals, and finally exchanging goods for money in its various forms (cash, credit, electronic, or digital).