What kind of risk taker are you? Do you love "the Vegas"? Or, do you cringe when someone tells you they are going bungee jumping? Most of us fall somewhere in the middle. Do you ever think about the most successful people in the world and what kind of risks they took to get there? (Success is relative, I know). The ones who started with nothing really had to put their butts on the line to reach tall successes; we've all read their books. I am currently reading Richard Branson's Losing My Virginity and really enjoying reading about his life and his path. As you know we have been talking about risk a lot lately and I want to continue to address it. Without spending an incredible amount of time studying risk there would be no way, and I mean no way, we could survive and even thrive in the markets since 1989!

So, maybe you are thinking, duh, I know about risk and I know how I feel about it. That's great! That's a start! This helps when you make decisions in life. BUT.....did you ever hear the quote, "No risk, no goodies."? Vanessa Summers, our amazing business coach, coined that one. And, it is true. We also heard at a conference recently, "Comfort is the enemy of growth," so says Dr. Donald Epstein. Think about it. We all like to be comfortable, but how did you get comfortable in the first place? Did you come to a crossroads, make a decision and move forward? Well, in that situation you had to step out to make that decision. You were uncomfortable for a moment in time, but look at you now. You moved forward and I am sure there was growth. It may not have been a pretty transition, but you made it. So, why don't you keep going? Step out again and get ready to grow! It's thrilling, not to mention rewarding!

Truthfully I am not a huge risk taker. I don't love "the Vegas", but I do like it. I will go with a couple hundred dollars and when I am up a couple hundred more, I stop. If I blow it all in the beginning, I am done. No going to the ATM to get more. It's a plan and I stick to it. I do take calculated risks. I know my downside which makes me feel comfortable. I don't go into the idea with a blindfold over my eyes.

I once heard that entrepreneurs are THE BIGGEST risk takers. They get out there and take chances, says Webster. They fall, pick themselves up, brush themselves off and move forward. Every time! They don't have all these fears that hold them back. After all, fears are just learned thoughts and stories. Just stories. And, most entrepreneurs don't have much fear. They are like little kids.

So, where am I going with this? In terms of trading you must have your risk UNDER CONTROL. Even if you are not a trader, I am sure you are an investor. And, here is the all-important TIP....know where you are getting out before you get in. I will say it again. Know where you are getting out before you get in. Mickey Hoffman, founder of University of Trading, gave us that juicy tip back in the day! This tip goes for every single investment of all time, ever! Say you open a CD. You do know what's going to be in your account when the CD matures, right? Say you buy a stock. You do know, or you should know, where you want to get out, even if it's against you. Let me address that for a moment. When you buy a stock, without a doubt you should have a target of where you want to take profit and where you need to admit loss. Not everyone does this, but the smart ones do! And, what about buying a home or a car? When we bought our first condo, we said we would sell it if the value doubled. Seven years after the purchase the value had doubled and we SOLD! That worked out well! If we still had that investment today, we would be at ground zero again and bruised from kicking ourselves.

Learn to take profit and admit loss. Again, in terms of trading, you better have a plan before you click that button because these markets move. Here at RDS Trader we use the RDS Risk Calculator (developed by Mike Radkay) to properly assess your personal risk tolerance with market risk. We give you a plan so that you know exactly when it's time to stop whether you are up money or you are down money. We guide you to trade the markets that are suitable for you, and we teach you what the market can "hand you" over certain time periods. You gain a solid, working plan to guarantee your return to the markets tomorrow.

The opportunity to come back and play tomorrow is "staying power". We have "staying power" when we become excellent risk managers. And, when we are excellent risk managers we can step out and take appropriate risks when the opportunities arise. Remember: No risk, no goodies.

For more RDS articles on trading, visit www.rdstrader.com.