Hello everyone, I am from UK and have been a silent reader for a long time. Made an account today just to ask something about risk management.
Let's say I have somehow managed to double my capital. I went on to withdraw my entire initial deposit, believing this to be good risk management. However, one of my friends said this isn't risk management-this is "fear management" (first time hearing this) and that I am doing so as I lack confidence in my system. My rationale is that since we always say to protect our capital, by doing so, I have just ensured that my capital is 100% safe?
What do you guys think? Thank you.
Let's say I have somehow managed to double my capital. I went on to withdraw my entire initial deposit, believing this to be good risk management. However, one of my friends said this isn't risk management-this is "fear management" (first time hearing this) and that I am doing so as I lack confidence in my system. My rationale is that since we always say to protect our capital, by doing so, I have just ensured that my capital is 100% safe?
What do you guys think? Thank you.