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.
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免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。