To manage risk reward ratio

To manage risk reward ratio, you also need good knowledge. The ability to find a good trade is important. You have to find out what you are best at. How many entries are right and wrong out of 10. Sometimes 1:1 risk reward can be good if your winning ratio is more than 50%. It's actually a trail and error process. You have to find what's best for you.

Risk is the common matter in the forex market. If you can not deal with the risks you can not survive in this risky market.

Marraby posted:
In theory, many things seem to be effective.
But in practice, everything may not be so perfect.

That’s true. So, trader should use any theory in demo first before applying in real trading.

The risk/reward ratio is used to assess the profit potential (reward) of a trade relative to its potential loss (risk). Both the risk and reward of a trade are based on boundaries that the trader sets. Risk is most common in the forex market and to manage risk to reward ratio you need good knowledge about trading.

there is no one in this market place who can avoid risk in spite of having good knowledge and experience , so sometimes of course we have to face risk, no way to deny. 

1:1 risk reward ratio is the best you can make use of. It is very important to focus on your risk management.

I agree that risk is haunted in this business at every step. And you assess it at every moment by individual parameters and it's normal when you already have experience and a sense of the market.

If you can manage your risk in the forex market, you can become successful easily in this risky market.

The ugly truth is that you can't trade without taking risk.

It is never possible to gain trading profit if the risk management ratio is not followed properly. I always trade at 1: 2 and 1: 3 risk rewards.

right now i completely avoid news trading due to over risk ,
actually news trading contain huge risk than others in Forex community session.

Oh, this is the hardest part of this job. And it's difficult to keep it under some kind of control. And you can be in some kind of emergency situation at any moment.
Any moment.
Any...

Tradelist45 posted:
right now i completely avoid news trading due to over risk ,
actually news trading contain huge risk than others in Forex community session.

News trading is highly risky especially for new traders. Only experience trader should try this kind of trading strategy.

Yes, proper knowledge is very important in order to manage the risk reward ratio. 2:1 ratio is said to be the best to maintain.

It is important in trading. I use the 1:2 risk-reward ratio most of the time.

AniLorak posted:
no one can avoid the risk ratio but honestly speaking by using most powerful analyzing risk management the percentage of risk can be reduced of course.  

Yes, you are right. Discipline should be applied to maintain risk management.

There must be a loss in trading. If I want to manage this loss, I must maintain the risk ratio. If I maintain a 1: 2 risk ratio, I will easily get my profit percentage.

Having a good risk reward ratio is important. But unfortunately most traders do not know if they have any risk reward ratio. They trade randomly. As a result they can't manage their risk.

The risk/reward ratio helps traders manage their risk of losing money on trades. Losing trades hardly make a dent in a trader’s account that uses a positive risk-reward ratio.