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Is my capital guaranteed from loss?

Wouldn’t it be nice if we could lose all our money trading and then have some organization giving it all back to us? Can you imagine? We enjoy all the fruits and someone else takes all the risk. Nice, right?

Not even in fairy tales does that happen (maybe only if you’re a big, greedy bank!). No broker or expert can guarantee that you won’t lose your money when you trade. Remember, if you want to become a day trader, you will have to call the shots. You will make the decision to buy and sell. You are in control of your own destiny and responsible for your own losses and gains.

If anyone guarantees that you will make money trading, they are lying to you. Do you know for sure if you will make money when you start a new business? Trading is a business like any other. There are no guarantees. Nevertheless, because businesses cannot be guaranteed does not mean that they shouldn’t be started.

Can you imagine what the United States would be without entrepreneurs and venture capitalists?

Read more about trading and risk control in this section.

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