Risk Management in Trading | Why You Don’t Need to Win Every Trade
The Weekly Edge · Episode 4 · Alex Seery & Bill Betts · ·
Listen to Episode 4
Spotify episode player coming soon.
Listen to The Weekly Edge on your preferred platform below.
What this episode covers
- Recognising your own triggers and following a clear plan.
- How risk-to-reward works, and why winners need to outweigh losers over time.
- Approaches to managing risk on prop firm challenges and account drawdown.
- Why beginners may benefit from starting small.
- Strategy hopping and sticking with one process long enough for probabilities to play out.
Episode notes
What happens when you break your own trading rules, and why can good risk management save you even when you make mistakes?
In this episode of The Weekly Edge, Alex Seery and Bill Betts take an honest look at risk, probabilities and the discipline needed to stay consistent in the markets.
Bill starts with a confession about a trade he knew he should not have taken, and the lesson that followed when the market moved against him. From there, Alex explains why recognising your own triggers, following a clear plan and managing your risk can make such a difference over the long term.
They explore one of the biggest misconceptions in trading: that you need to win most of your trades to be profitable. Alex breaks down how risk-to-reward works, why a trader can lose more trades than they win and still make money, and why your winners simply need to outweigh your losers over time.
The conversation also looks at different approaches to managing risk on prop firm challenges, how account drawdown affects decision-making, why beginners may benefit from starting small, and why increasing risk before you are ready can quickly create problems.
Bill and Alex also discuss strategy hopping, the temptation to change approach after a losing trade, and why sticking with one proven process long enough for the probabilities to play out is so important.
Ultimately, risk management is not about avoiding losses. Losses are part of trading. It is about making sure no single loss has the power to derail everything you are working towards.
No hype.
No noise.
No unrealistic promises.
Just real conversations about trading.
Learn about Trade to Success (opens in a new tab)
Follow The Weekly Edge for new episodes every other week.
Risk notice
This episode is for educational and informational purposes only and is not financial, investment or trading advice. Trading financial markets carries risk and you may lose some or all of your capital. Past performance is not indicative of future results, and no results are guaranteed. Seek independent professional advice where appropriate. Read our full trading disclaimer.