I don’t think there is such a thing as insurance that covers trading losses. However, big hedge funds do employ hedging techniques to guard against price volatility. In a way, this can be regarded as “insurance” against capital depreciation.
I believe that trading in itself is not risky. The riskiest part of trading is actually the trader. Trading involves taking a risk with the chance of profit – if the trade goes according to plan. So the key is managing that risk, and obviously only the trader holds that key. Most new traders fail not because they do not know what to do, but because they often risk too much by seeking big profits in a short time. This is a fatal flaw and the market will always punish the trader eventually.
Trading profitably is about consistency and risk management. You must learn how to lose responsibly (risk management) to trade profitably.
To your success as a profitable trader,
Mario
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