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Risk Type Compass

Examining your Risk Type, Risk Attitude and Risk Tolerance

In the dynamic world of trading, self-awareness, and understanding of one's risk disposition helps traders to potentially elevate their trading success. The Risk Type Compass serves as a valuable tool for traders to optimize their strategies, manage their risk, and develop a resilient approach to the challenges of the financial markets. RTC is extensively used in trader coaching around the world.

RTC focuses on the way traders perceivereact to and manage risk, as well as how they make decisions. RTC highlights your strength areas, your risk appetite and identifies blind-spots, potential performance improvements and the style of trading you are most suited for.

Based on extensive global psychological research, it places traders into one of eight distinctive Risk Types. Each Risk Type embodies unique traits and characteristics that can have significant implications for how we think and act. Each Risk Type shows upside and downside tendencies, enabling us to identify deeply-rooted dispositions that can manifest as inclinations and biases in our trading experiences.

Further nuance is provided by specific location on the Compass. Traders toward the periphery of the Compass will embody the characteristics of their Risk Type more keenly.

By identifying critical individual differences in Risk Appetite, trading firms can maximize potential and balance the contributions of risk-takers and the more risk-averse individuals.

Congruency

Different trading strategies carry varying degrees of risk. RTC helps traders align their risk profiles with suitable strategies, leading to a more congruent and harmonious match between trading style and risk tolerance. 

In the competitive world of trading, every advantage matters. RTC equips traders with insights that can set them apart by facilitating more strategic, informed and controlled trading.

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Foto Mad beurs zwart-wit.jpg

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