The traders who win are those who minimize risk. This is another key chapter and its importance is such that readers should read it carefully and ensure they understand its contents. Those who do not minimize risk inevitably pay the price and get wiped out.
It is for this reason that you often see strong moves after a news item is out of the way, often a news item suggesting a strong move in the opposite direction. The big traders, who got that way by minimizing risk in the first place, wait until the risk is at its lowest, when the news is out of the way.
Risk Control includes the following: