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

CraigMcG2020
Oct 08 at 07:10
162 posts
Wiljanvh posted:
CraigMcG2020 posted:
blackChelsea posted:
I keep my risk reward ratio to 1:5. There is no harm for getting 1000 when keeping 200 on risk.


Thats the ideal i think between 1:3-1:5 but you have to have the mentality to deal with the losses as the is around a 55%-60% accuracy id say. What is yours like?


With a risk reward of 1:3 and a win rate of 55% you would be a excellent trader actually, and is very hard to reach.
You can be very profitable with a RR of 1:1.5 and a win rate of 50%
I think a lot of people have a completly wrong idea of what being profitable is. It is about being consistant in the long run.
A high RR combined with a high win rate is almost impossible. And anybody who is promising these crazy high win rates with crazy high RR is probably bullshitting.


Yeah completely agree. A sure fire way to know a fake guru is high accuracy and RR. 55% isnt sexy but will make you profitable

Seb King (sebking1986)
Oct 08 at 10:22
149 posts
For sure. Hate seeing these promises of 95%+ accuracy as you just know it's a scam and that there are some poor saps out there that get drawn in by it.

If you can't spot the liquidity then you are the liquidity.
croisssan
Oct 08 at 12:20
485 posts
As for me, the risks in this industry are quite frequent, and it is worth paying attention to.

Unellene
Oct 12 at 13:57
283 posts
you need to understand that the greater the risk in the transaction, the more profit you can get, only the chance decreases, such is the dependence

marindateal
Oct 15 at 10:27
53 posts
No one can be right every time. However the risk-reward ratio can be used to make decent profits from the Forex market.

Unellene
Oct 17 at 09:53
283 posts
here you need to understand that with risk in work, you can go to profit as well as in profit, but you can also lose a lot of money

marcusobrien
Oct 27 at 03:56
36 posts
In order to manage the risks and save the trading capital, risk/reward ratio is vital to use. The optimal RR ratio differs widely among different strategies but a ratio of 1:3 is generally considered good for all the traders.

Pezza
Oct 30 at 17:48
44 posts
No trade is ever a certainty. You need to have a good RR ratio to ensure that you minimise your risk. I only risk 1-2% of my account in any one trade. I like to keep my ratio at 1:3. Without that risk management it is too easy to blow your account or make much higher losses.

forex_trader_[2725383]
Oct 30 at 20:02
1 posts
Interessante conversation... merci beaucoup

AliaDare
Oct 31 at 01:22
682 posts
The expectation that a trader will get $ 3 by investing $ 1 is called investment. One of the advantages of using it is that the stock market or the forex market cannot be traded with a 100% profit guarantee, so the risk ratio is used to keep the loss percentage low. Like I use 1: 2 or 1: 3 ratio.

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