Controlling Risk Appetite, The Desire to win & Being Discipline
Human being with an insatiable greed cannot satisfy all his appetite level. Appetite is said to be a natural phenomenon of ones strong desire or likeness. In human nature, our appetite varies in terms of our social being, where we find ourselves as well are our culture. There are many people that due to their social make make up would prefer to do certain things that others may ignore. Others our binded by their culture or ethnicity to desire or feel that certain things are undesirable for them to do. The environment also restricts or enforces others to also take part or be in certain situations.
Controlling risk appetite in business perspective
Our risk appetite in business arena is tantamount to business risk management. Whether you have been influenced by your culture, social make up or your environment doesn't matter here since every game has its peculiar rules, hence the more you stick to the rules, the more you win. Many people have conflicting reactions merging what they perceived to their risk appetite in their business or investment. They have a challenging mindset, emotions and feelings which is direct opposite to the original rules they have to follow in order to be successful. That is why many people have been in marketing, very lucrative investment package, yet they are unsuccessful for many years.
Psychology & risk appetite
When it comes to investment, psychology cannot be rules out.Psychological conscience can conflict with the normal rules on the market. One may turn to forget to calculate his risk, use proper risk management and risk to reward ratio due to his psychological mindset. We can over excited ๐๐ when we find that the market is going on our favour, forgetting to monitor the market movement, measuring our position sizes and controlling our timely of market. Crypto trading is such a volatile due to its unstable rise and fall. Novices trader can be trapped with it psychology when the market is moving in certain direction. With little time the market can change. Many novice traders feel robust to revenge the market when it doesn't go on their favour. This is wrong attitude since the market does it move to where it wants to go.
The Desire to win & being discipline
The desire to win should be accomplished if one follows certain disciplines. Disciplines are such rules one should follow in order to complete a task. In business, one should be disciplined in order to win. Failure to comply with the rules can let one fail. Being greedy to get more profit which violate the rules of risk management. many novices are faced with challenges of controlling their risk appetite.
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