I want to talk a bit about risk with you. One of the biggest challenges to learning and teaching is to make sure that we understand each other (the best we can).

Risk, as other words in Portuguese is a word that is written in a unique way, but often used to describe different ideas. Know the definitions of each will help you get a quick understanding of what we are talking about.

Sometimes we use the word RISK to describe the risk of our capital at any given moment in time. We call it "risk to property." Making an extension, it is as if there were a serious risk to capital. That is, if something unexpected and unprecedented in the market place normally. But you can also be in the situation that if you trade without a stop loss or without discipline (a real account).

The word risk is also used as follows: It "seems risky." This is a way that we call "risk tolerance". It's like the circumstances (more equity, unknown circumstances) leave us with the feeling more risks at stake. For me, risk tolerance specifically means the time when your feelings interfere with their execution, causing a change in behavior.

Risk is also used for risk and return. This is a relationship between the percentage that you can lose, and the percentage that you can win. This is a very important concept, but here I just want you to know that this is just another way that the word "risk" is used.

There is another way that we use the word risk, and I want to give you attention to it, "the risk was high because the setup was based on the release of non-farm employment data".

This use of the word RISK is symbolizing a factor that decreases the probability of gain. We could only an easy way to tell that "the probability of success is lower". It is the same thing as when I referred to a "high risk". In the context, saying "the probability is low" is probably a better way to communicate. But as an instructor, there are some ideas that people do not want to accept, and you have to do it.

For example, you'll notice that we wrote the words risk and return with the word "risk" appearing in the first term. But when we actually write the numbers, it is the reverse that occurs. 2: 1 is actually 2 return and risk 1.

We see the price going to a resistance area. If everything looks good, I can say that the point of negotiation increases the risk, so you need to take the movement a better price.

As you can see, learn to trade forex can be tricky. You understand what I'm really saying? The only way to know is checking. And so, again emphasizing the importance and traders community.

You'll notice that while practicing techniques and applies logic, that's when you get feedback from other traders. Hitting, your confidence increases. This is important. Most traders out there do not have it because they do not have much feedback and the only way to gain any trust is negotiating with consistent success. Increase your confidence as part of our traders community of price action.