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

forex_trader_[1984295]
Nov 05 2020 at 06:26
42 postów
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.
layerchazard
Dec 04 2020 at 07:44
15 postów
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
Dec 04 2020 at 07:50
57 postów
Risk reward is very important, I try to keep it 1:2 as much as I can.
LyudmilLukanov
May 07 2021 at 22:43
798 postów
It is essential to survive in the market. After all, it is a risky market.
LukeRachel
May 08 2021 at 00:54
477 postów
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
May 08 2021 at 13:19
521 postów
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%.
CraigMcG2020
May 09 2021 at 10:25
331 postów
Completely agree, it will make sure you are profitable. Its so important to have a positive RR
UweMoench
May 09 2021 at 13:10
751 postów
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
May 11 2021 at 07:25
107 postów
I always consider the 2x-3x for the risk reward ratio to be quite best when it comes to forex trading.
SofieAndreasen
Jun 04 2021 at 14:33
759 postów
It helps traders to stay in the business for long.
Andronn
Aug 06 2021 at 06:08
90 postów
The correct approach is always a positive result and good income.
Unellene
Sep 11 2021 at 16:24
283 postów
there are moments in which the risk can really justify itself, so you need to try such options
skihav
Sep 12 2021 at 08:31
801 postów
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
Oct 05 2021 at 20:07
8 postów
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
Oct 06 2021 at 04:49
10 postów
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)
Oct 06 2021 at 06:35
125 postów
I keep my risk reward ratio to 1:5. There is no harm for getting 1000 when keeping 200 on risk.
CraigMcG2020
Oct 06 2021 at 07:06
331 postów
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
Oct 06 2021 at 12:36
6 postów
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
Oct 06 2021 at 20:24
10 postów
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.
billysnyder
Oct 08 2021 at 05:38
100 postów
@skihav, I agree with you. By correctly assessing the risks in this industry, the traders can get benefits, and they do not lose their money.
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