Important Concepts About Risk
💰

Important Concepts About Risk

Created
May 3, 2023
Read Time in min.
6
Imagine you were to open a restaurant, you have to consider many things for example (but not limited to):
  • Rent: Choosing a location for the restaurant is crucial. The rent should be affordable, but the location should also be convenient and easily accessible to customers.
  • Payrolls: Hiring skilled staff is essential to run a restaurant successfully. It is important to set a budget for employee salaries and ensure that it aligns with the business's financial goals.
  • Furniture: Comfortable and stylish furniture adds to the overall ambiance of the restaurant. Careful consideration should be given to the type of furniture that will be used, including tables, chairs, and other decorative pieces.
  • Ingredients: The quality of ingredients used in a restaurant is critical. Sourcing fresh and high-quality ingredients will help to create delicious and memorable dishes that keep customers coming back.
  • Advertising: A strong advertising strategy is necessary to attract customers to the restaurant. This can include social media campaigns, flyers, and other promotional materials.
  • Marketing: Effective marketing strategies, such as loyalty programs or seasonal promotions, can help to retain customers and increase revenue.
Other important considerations when opening a restaurant include menu planning, equipment purchasing, and developing a sound financial plan. By carefully considering all of these factors, you can increase the chances of success for your restaurant.
So many things you have to understand prior to opening a restaurant, many business will fail because they don’t understand the things involved with their businesses.
Trading is no different from this. You wouldn’t believe how many people I’ve came across through the years that just don’t know this. And It’s the most important thing. You have to know your numbers!!
These are the concepts you have to understand about before placing a trade:
  1. Your expenses for doing business:
      • Platforms
      • Market Data
  1. Knowing your asset:
      • Tick Value
      • Tick Size
      • Commisions
  1. Additional expenses:
      • Your additional suscriptions.
These will impact in your trading as they are things that you owe even before placing a trade.
On the next i will cover all of these three aspects.
Built with Potion.so