There are risks to everything you do. For example, where you choose to live...
If you choose to live in Florida, you may be taking the risk of getting your house blown down by a hurricane. On the flip side, if you choose to live in California, you may have earthquake risks.
However, that doesn't stop 38 million people from living there! The point is: there are risks to everything you do – whether it be choosing where to live or trading in the stock market.
A trade risk is what you put on the trade. For example, if you put $1000 on a trade, that is your trade risk.
The market risk is different from the trade risk. The market risk describes what can happen to the market.
For example, a war may break out in Greece or Spain. Or there may be a catastrophic event that affects the debt ceiling. Something that happens to the global economy, your current country, etc. all represents the market risk...