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Risk/Reward Ration-Why you should master the Act.

Nov 05 2020 at 06:26
42 posts
What is risk and reward ration, and why you should master the Act.

Risk/reward ratio, an estimated measure of th profit potential per amount risked. For example a trader might use a 1:4risk/reward ratio meaning that they are willing to risk $1 to mak $4. Risk and Reward ration potentially give you a hedge to have the best Money Management with huge profits returns with time with very low drawdow.

If you can truly maintain this, you will be making profits with reasonable little risk and it one of the best way to be a profitable trader as it allows you keep making profits at a better ration. First time I started managing funds 20 years ago under a firm, that was where all the emphasis of trading was focus on, once you master the Act, you are a proffesional trader.

Dec 04 2020 at 07:44
15 posts
I try to keep my risk reward ratio 1:3 and always make sure that I am using stop-loss orders and derivatives such as put options.

Dec 04 2020 at 07:50
51 posts
Risk reward is very important, I try to keep it 1:2 as much as I can.

May 07 at 22:43
588 posts
It is essential to survive in the market. After all, it is a risky market.

May 08 at 00:54
330 posts
If my strategy ever fails then the risk ratio helps me in my defense. So I always maintain a 1: 2 risk ratio and trade.

May 08 at 13:19
292 posts
LyudmilLukanov posted:
It is essential to survive in the market. After all, it is a risky market.

Managing risk is the most significant yet ignored aspect in trading. I mean most of the traders don't have any risk management coverage. I don't risk more than 1 percent of my funds in one trade. If I start more than 1 trade my highest possible risk percentage is 2%.

May 09 at 10:25
135 posts
Completely agree, it will make sure you are profitable. Its so important to have a positive RR

May 09 at 13:10
593 posts
Yes finding the risk reward and winning percentage of your strategy is important. It gives you more confidence as you know more about your strategy.

May 11 at 07:25
103 posts
I always consider the 2x-3x for the risk reward ratio to be quite best when it comes to forex trading.

Jun 04 at 14:33
614 posts
It helps traders to stay in the business for long.

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