Risk Pressure Maps are external issues best described thus:
The Quantitative & Qualitative Assessment, Evaluation & Management Of Market Risks
It starts where most New Traders tend not to progress from, i.e. with an introductory education into the rudimentary operations of the Global Financial Markets. Its at this level, this entry point, that many quickly lose their way as they experience dizzying overwhelm given the sheer size of the information universe.
If this is you, fear not, its not your fault, the process of understanding Trading to the uninitiated is unintuitive & does require a helping hand to correctly calibrate self and see the right things.
What is required here are several solutions wrapped up in one
- The need to shrink the perceived volume of information
- The foresight to remove that which doesn’t add significant value for Traders who must realise they are in a race to becoming as quickly independent as possible
- The skill to select the right information that will add significant value to Trade decisions
- The establishment of a working process that marshals activities from the knowledge gained.
The biggest Secret that can be told about the Markets is actually that…
There are no SECRETS!
Unfortunately there is only the not knowing combined with the lack of experience in then joining the dots & making new level connections with that knowledge.
Doing that without some initial assistance is extremely tricky.
The art of evaluating market risks EQsIQ addresses as Mapping. This is because when reasonable Education progress has developed, the goal of sizing opportunities becomes prevalent. A methodology that assesses opportunity for Ideas.
However, there’s a catch…
If we focus too much on individual markets, if we corner ourselves too early with too high a focus, we leave a lot of Risk unaccounted for, and certainly in the early days the true emphasis of trading is less about the winners (those will tend to take or themselves), its more about not losing big.
The issue is the preservation of your Capital, long enough to allow you to take swings at the big opportunities which will eventually come if you’re methodical & persistent, but most of all if you always get into the habit of placing risk first!
So what does this mean in the big picture?
What it means is that you need to eventually get to know it all!
Stocks, Forex, Futures, Bonds & Options on all those at least to a proficient level, & doing that does several things for you many New Traders never get to discover:
- It gives you an advantage in your flexibility & choice of approach when you spot an opportunity.. with more knowledge you have greater room “to dance”
- You’ll be best placed to gravitate towards a Trading style that bests fits your personality, interests & aligns your advantages because you’ll know better how the markets are all interrelated & what type of thinking where improves that particular Market & asset style.
- Most importantly with that knowledge you’ll want to know better what is happening in all areas related, it’ll expand your global view, this unlike many will give you a premium head start because it’ll reduce your susceptibility to shocks that tend to happen to those too focused on one segment of the markets.
- If your risk is placed first and your knowledge is broad you can hunt and find premium opportunities in one market where others may tend to be lacklustre.
A Risk Pressure Map is a beautiful way to formally engage with attempting to picture all that risk, in a systematised way, it tends to be global, & it has a rolling capacity as it moves through the time-zones, & that ongoing process is referred to as Mapping.
RISK PRESSURE MAPPING dovetails from Education, to Risk Management and all the way through to Trade Hacking & SetUps to form a living breathing process which if enacted properly through the right steps will catapult you into that group of professional Traders that tend to attract rather than lose money.
Its not easy, there’s a lot to learn at first upfront… but its not as difficult to learn if you see the story & the connections. There are no short-cuts, but like watching a Film, if you enjoy the process by connecting the dots, you wont realise much you’re engaged in absorbing the material.
At EQsIQ, we make education feel like an adventure you’d flip more pages for…