Example of How to Set up a 1:3 (Risk/Reward) Trade Ratio. Please look on chart. *Money management will keep your trading.
* On chart:
If current price action on this CALL trade drops to 0.15 cents or to $11.20 risk (stop loss) will automatically get you out, with a $150.00 loss
If current price action on this CALL trade goes to 0.45 cents or to $11.80 reward will tell you to get out, with a $450.00 gain
You can drop stop loss to a 0.25 cent or to $11.10 ($250/RISK) and you raise ($750/REWARD) to 0.75 cent or to $12.10, on chart example to keep this 3:1 RATIO
This is how you always keep MONEY MANAGEMENT high in your mind. Think about it, if you do 4 trades, with three losses and one win and maintain always a RISK/REWARD Ratio of 3:1- you wold still be EVEN. If you are ITM: 2/2, 3/1 or 4/0 you would be making a profit. Always know your why & when to enter a trade and when to exit a trade. This will keep you trading and you will be part of the 10% whom can trade for LIFE and not the 90% whom fail at trading.
Wish all success.
* On chart:
If current price action on this CALL trade drops to 0.15 cents or to $11.20 risk (stop loss) will automatically get you out, with a $150.00 loss
If current price action on this CALL trade goes to 0.45 cents or to $11.80 reward will tell you to get out, with a $450.00 gain
You can drop stop loss to a 0.25 cent or to $11.10 ($250/RISK) and you raise ($750/REWARD) to 0.75 cent or to $12.10, on chart example to keep this 3:1 RATIO
This is how you always keep MONEY MANAGEMENT high in your mind. Think about it, if you do 4 trades, with three losses and one win and maintain always a RISK/REWARD Ratio of 3:1- you wold still be EVEN. If you are ITM: 2/2, 3/1 or 4/0 you would be making a profit. Always know your why & when to enter a trade and when to exit a trade. This will keep you trading and you will be part of the 10% whom can trade for LIFE and not the 90% whom fail at trading.
Wish all success.