Risk of trading losses
This is the most obvious and intuitive one—we want to trade to make money, but we always run through the risk of losing money against other market participants. Trading is a zero-sum game: some participants will make money, while some will lose money. The amount that's lost by the losing participants is the amount that's gained by the winning participants. This simple fact is what also makes trading quite challenging. Generally, less informed participants will lose money to more informed participants. Informed is a loose term here; it can mean participants with access to information that others don't have. This can include access to secretive or expensive or even illegal information sources, the ability to transport ...
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