RISK INFORMATION
Lots of traders tend to overlook risk disclaimers as if they are mere technicalities required in the course of business in the industry. With all trading strategies, there is "profit potential" and there is "risk potential". All too often, traders interpret "profit potential" as a "promise of profits", while at the same time, if risks are realized, the term "risk potential" is interpreted "I was duped".
In trading there are risks, and these risks are very real. Risk potential means you could experience losses. Profit potential means you could experience profits. Past performance, whether hypothetical or real, does not diminish the risk potential of any strategy. The problem with simply glossing over risk disclaimers and not taking them seriously is that it causes traders to make decisions they would not otherwise make.
Specifically, overlooking a risk disclaimer may lead to deciding to trade a strategy that you would otherwise decide against trading had you taken the risks associated with that strategy seriously. It also causes traders to stop trading strategies long before they should stop trading them because they did not take the risk disclaimer seriously.
Understanding risk is more important to the overall success of trading than you might think. In fact, your understanding of risk (or lack of understanding), affects virtually every trading decision you make from markets to trade, account size to start with, beginning trade size, levels at which you increase or decrease your trade size, and of course, how long to stay committed to a strategy.
It is to your detriment to ignore this, and any other risk disclaimer associated with trading. Every strategy and trade opportunity associated with DRAT ALERTS carries risk. In all cases, you decide whether the "profit potential" is worth the "risk potential".
At Dowstrademus, we want to ensure you are fully informed about the substantial risks involved in trading futures contracts and options.
📉 Significant Loss Potential: Trading futures and options can result in substantial losses, potentially exceeding your initial margin funds.
🔔 Contingent Orders: Orders such as "stop-loss" or "stop-limit" do not guarantee a loss will be avoided. Market conditions can prevent the execution of these orders.
📲 Margin Calls: You may be required to deposit additional margin funds on short notice. Failure to provide these funds within the required time can lead to the liquidation of your positions, and you will be responsible for any resulting deficit in your account.
🤔 Understanding Contracts: It is crucial to thoroughly understand futures contracts and options before trading. Assess whether such trading aligns with your financial situation and investment goals.
📈 Option Trading Specifics: If you trade options, familiarize yourself with exercise and expiration procedures, including your rights and obligations.
👔 Important Considerations: This statement highlights only some of the risks involved. There are other significant aspects of trading in futures and options that you should be aware of.
Engage in trading only if you fully comprehend the nature of the contracts and the extent of your risk exposure.
Futures and options trading is not suitable for everyone. Consider your experience, financial resources, objectives, and other relevant factors before deciding to trade.
At Dowstrademus, we are committed to providing you with the information you need to make informed trading decisions.
