
Nov 05 2020 at 06:26
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.
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.
layerchazard
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15 ieraksti
Dec 04 2020 at 07:44
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.
feelsofine
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60 ieraksti
Dec 04 2020 at 07:50
Risk reward is very important, I try to keep it 1:2 as much as I can.
LyudmilLukanov
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869 ieraksti
May 07 2021 at 22:43
It is essential to survive in the market. After all, it is a risky market.
LukeRachel
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477 ieraksti
May 08 2021 at 00:54
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.
Akasuki
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617 ieraksti
May 08 2021 at 13:19
LyudmilLukanov posted: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%.
It is essential to survive in the market. After all, it is a risky market.
CraigMcG2020
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399 ieraksti
May 09 2021 at 10:25
Completely agree, it will make sure you are profitable. Its so important to have a positive RR
UweMoench
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751 ieraksti
May 09 2021 at 13:10
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.
robindude
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110 ieraksti
May 11 2021 at 07:25
I always consider the 2x-3x for the risk reward ratio to be quite best when it comes to forex trading.
SofieAndreasen
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759 ieraksti
Jun 04 2021 at 14:33
It helps traders to stay in the business for long.
Andronn
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90 ieraksti
Aug 06 2021 at 06:08
The correct approach is always a positive result and good income.
Unellene
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283 ieraksti
Sep 11 2021 at 16:24
there are moments in which the risk can really justify itself, so you need to try such options
skihav
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801 ieraksti
Sep 12 2021 at 08:31
It is very important for a trader to be able to correctly assess the risks in this industry. Otherwise, it will not be so easy to get the expected result.
Bush_d
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8 ieraksti
Oct 05 2021 at 20:07
I actually believe that risk reward ration is the cornerstone to successful trading. It is impossible to be 100% right all the time, but even if you are 50% right, your trading may bring you decent profits.
sphinxo
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15 ieraksti
Oct 06 2021 at 04:49
They are quite useful in providing you a better profit in term of consistency, so it is always good to master them.
Chelsea Blacks
(blackChelsea)
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125 ieraksti
Oct 06 2021 at 06:35
I keep my risk reward ratio to 1:5. There is no harm for getting 1000 when keeping 200 on risk.
CraigMcG2020
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399 ieraksti
Oct 06 2021 at 07:06
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?
Wiljanvh
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6 ieraksti
Oct 06 2021 at 12:36
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.
Keamon
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10 ieraksti
Oct 06 2021 at 20:24
The importantce of risk/reward ration cannot be overrated. It is an open secret that it is impossible to be 100% right about the market, that is why you definetely need to hedge your risks by your profits. In this case even if only 50% of your deals are successful, you will still have profits. That is quite a simple concept but it always works.