Risk simply means that “not having in control”, in a certain situation or condition.

Like instance, that if we’re driving a car in the express way, that’s already considered a high risk. But the good thing is there are certain procedures that we can do to control that risk:

- Proper education and passing driving test skills are required before a motorist allowed to drive, this qualification called a driver’s license.

- Our car or vehicles nowadays also equip with lot of security features, such as a seat belts, airbags, auto stop systems, etc.

- When we are new in driving, we usually accompanied with other person which is more knowledgeable and experienced than us. Start hitting the road at 10mph and slowly increase the speed as we grow our confidence.

All of this setup assists us to let risk in control in terms of driving a vehicle. Since that we can’t eliminate the risk completely, what we can do is only to take appropriate action to minimize it.

These principles are all the same in doing stock trading. Proper education and  skills before joining the real arena is a must. Most traders fails to succeed on stock market because of lack of proper mind set or education, by just opening an account to the stock broker, especially online and viola!... you can hit the road without license, I mean not well equip and training.

For security features on driving a vehicle, on stock trading we have to see to it that we decided where or when to push the stop loss button as part of the strategy. When we’re new in driving we starts slow and then gradually moves faster as we built confidence, on stock trading, it’s advisable to play first virtual money at Philippine Stock Exchange: Stock Trading Game (http://www.pse.ph/html/STG/index.html). And buy minimum shares at first; then after you reach your acceptable result, you can increase your purchase price or buying shares.

As they say, playing / trading / investing on stock are very risky. Then never use amount of funds that you can’t afford to lose. It’s highly recommended to set your current financial status in order first. Pay first your credit bills, loans, savings, etc… once all is done, and then you’re ready to start at stock market arena by letting money work for you. Always remember, "Don't trade to get rich quick", is the best rule to control risk.