How can you risk small but gain high returns?
The answer is to enter a trade that allows you to set a tight stop loss without compromising the trade setup and has the potential you make at least 3 times more than the risk.
Here's a good example.
EURUSD has completed a Bearish Bat while showing signs of sellers already.
If you sell now, you just have to set your stop loss above point X of the bearish bat and your risk will be about 40 pips
On the other hand, your potential profits are 70, 100 and 160 pips based on the important support levels.
The first target will give you 1.75X return and the last one will give you 4X return.
So as you can see, this is very logical and reasonable.
We can't control how the market move but we choose what kind of trades to make.
The answer is to enter a trade that allows you to set a tight stop loss without compromising the trade setup and has the potential you make at least 3 times more than the risk.
Here's a good example.
EURUSD has completed a Bearish Bat while showing signs of sellers already.
If you sell now, you just have to set your stop loss above point X of the bearish bat and your risk will be about 40 pips
On the other hand, your potential profits are 70, 100 and 160 pips based on the important support levels.
The first target will give you 1.75X return and the last one will give you 4X return.
So as you can see, this is very logical and reasonable.
We can't control how the market move but we choose what kind of trades to make.
