Risk Management Best Practices
<p>Risk and reward are the two main pillars of financial markets. We love reward but dislike risk.</p>
<p>Therefore, the primary function when trading and investing is to <strong>maximize reward</strong> (Returns) and <strong>minimize risk</strong> (Volatility and other forms of risk). However, we need to understand that the two go hand-in-hand and there is no reward with no risk. It is simply a premium we have to pay to benefit from the reward, we only have to make sure that we have enough sound judgement that allows us to select the right rewards while benefitting from low risk.</p>
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