Risk - Willingness & Unwillingness

Success involves taking calculated risks. Risk taking does not mean gambling foolishly and behaving irresponsibly. People sometimes mistake irresponsible and rash behavior as risk-taking. They end up with negative results and blame it on bad luck.

Risk-taking is relative. The concept of risk varies from person to person and can be a result of training. To both a trained mountain climber and a novice, mountain climbing is risky, but to the trained person it is not irresponsible risk-taking. Responsible risk-taking is based on knowledge, training, careful study, confidence and competence which give a person the courage to act while facing fear. The person who never does anything makes no mistakes. However, he doesn't realize that not doing anything is his biggest mistake. Many opportunities are lost because of indecision. It is habit-forming and contagious. Take risks but don't gamble. Risk-takers go with their eyes open. Gamblers shoot in the dark.

Once someone asked a farmer if he had planted wheat for the season. The farmer 

replied, "No. I was afraid it wouldn't rain." Then the man asked, "Did you plant corn?" The farmer said, "No. I was afraid of insects eating one corn. Then the man asked , " what did you plant ? " The farmer said, "Nothing. I played it safe." 

                                                           ---------from You can Win by Shiv Khera.

One can correlate the above message with the stock market trader, if we can adapt this trading psychology to our trading system, we may realize, are we trading or gambling?