Most newbies, and even intermediate traders don't really understand what high risk to reward trades require from themselves and from the market. They think it is something to strive for, and that high RR trades are reserved for the pros. This is far from the truth.
In this video I try to give more perspective to this concept.
- R2F
This is the continuation of lesson 6a focusing on Money Management and how to optimize your performance in trading. It investigates the mathematics, probability and statistics.
This is a lesson focusing on Money Management and how to optimize your performance in trading. It investigates the mathematics, probability and statics.
Lesson 6b will be published shorty since time was not enough to finish the Money Management Lesson.
💲Succeeding in Trading with Just a 16% Win Rate💲
Ever thought you need a high win rate to be a successful trader? Think again. Many claim an 80-90% win rate, but beware - these are often false promises. Here's why a high win rate isn't essential and how you can profit even with a low win rate.
Introducing the Minimum Win Rate Formula
This formula...
Hi Traders, Investors and Speculators 📈📉
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫
For today's post, we're diving into the concept " risk reward ratio " by taking a look at practical examples and...
The key to becoming successful as a Forex trader is to find the right balance between how much you risk per trade to achieve the desired profit you are aiming for. This balance needs to be realistic and relevant to the technical strategy you are applying. You need to combine risk reward with your strategy.
The risk-reward ratio is simply a calculation of how much...
How Can Being an Average Analyst Lead to Profits? The Power of Risk Management and Risk Percentage
Introduction :
In the world of finance, where exceptional skills and expertise are often sought after, it may seem unlikely that being an average analyst could lead to profits. However, there is a simple formula that can help you achieve good results despite...
This is a roadmap to becoming a profitable trader. Follow these steps to avoid wasting time and bouncing around from idea to idea. We start with a basic strategy idea we like, then build off it. We MAKE it profitable by following the steps outlined.
1. Focus on One Idea or Strategy
Focus on one specific idea.
An idea is not “price action” or “technical...
📍What Is the Risk/Reward Ratio?
The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment. Many investors use risk/reward ratios to compare the expected returns of an investment with the amount of risk they must undertake to earn these returns. A lower risk/return ratio is often preferable as it signals...
It may not seem like it is very critical, but let's use two traders as an example.
Trader #1 on the left uses targets. They know the move may be way bigger than what they target, but every time they close a position, they can re-enter again, keeping a small risk for consistent reward.
Trader #2 on the right wants a home run every trade, and they do not use...
The reward to risk ratio (RRR, or reward risk ratio) is maybe the most important metric in trading and a trader who understands the RRR can improve his chances of becoming profitable. Basically, the reward risk ratio measures the distance from your entry to your stop loss and your take profit order and then compares the two distances. Traders who understand this...
OANDA:XAUUSD
A good risk/reward ratio could be seen as greater than 1:3,
where you would risk 1/4 of the overall potential profit.
For trading to prove profitable in the long term, a trader should not typically risk their capital for a lower risk/reward ratio,
as this will mean that half or more of their investment could be lost.
The risk/reward ratio...
Hello, Traders
Today we are going to explore risk management.
First of all, risk management is what keeps traders alive!
1. First of all - it’s very risky to get into a single trade with more than 20% of your trading deposit.
2. To begin with, you need to calculate the percentage of risk you plan for each trade. To simplify, it’s an amount of money you’re...
Risk Reward Pattern (PART 1) Explained fully.
Please for (PART 2) Check the link Below.
Don't forgot to add your comments to make things more better and better.
Thank you
