The risk-reward ratio plays a vital role, although a good R/R ratio does not ensure PROFITABILITY ‼️
Financial trading requires a systematic approach to increase the potential reward. Besides setting a reasonable take-profit level, you have to learn how to maximize your profits and minimize your losses.
SIMPLE MATHEMATICS!
Don’t be fooled by the risk reward ratio — it’s not what you think.
You can look for trades with a risk reward ratio of 1:6 - 1-10 and remain a consistent LOSER😏
You can look for trades with a risk-reward ratio of less than 3 and remain consistently profitable!
Instead, you must combine your risk-reward ratio with your winning rate to know whether you’ll make money in the long run (otherwise known as your EXPECTANCY) and QUANTIFY YOUR EDGE!
And the way to do it is to execute your trades CONSISTENTLY.
Financial trading requires a systematic approach to increase the potential reward. Besides setting a reasonable take-profit level, you have to learn how to maximize your profits and minimize your losses.
SIMPLE MATHEMATICS!
Don’t be fooled by the risk reward ratio — it’s not what you think.
You can look for trades with a risk reward ratio of 1:6 - 1-10 and remain a consistent LOSER😏
You can look for trades with a risk-reward ratio of less than 3 and remain consistently profitable!
Instead, you must combine your risk-reward ratio with your winning rate to know whether you’ll make money in the long run (otherwise known as your EXPECTANCY) and QUANTIFY YOUR EDGE!
And the way to do it is to execute your trades CONSISTENTLY.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.