Quote:
Originally Posted by xmess7
This is where it gets little "different". This is my personal approach to the risk-reward ratio aspect. True, the numbers show that the ratio is not acceptable when you are trying to just go for 1 pip. But since my initial investment was very low to start with, to me it doesn't matter. For example in one of the accounts I set up I got a group of folks together and we all pitched in $20 dollars to build a $400 account. I and another fellow managed that amount and were able to get it up to 5 digits in 2 months. Now the idea here is that if at any time we were to blow the account the only amount that was at risk for each of was $20 dollars. So therefore the risk is minimal when compared to the gain.
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Uh...let's say you turn $100 into $1.000.000. Now if you blew your account you'd just act like if you lost $100? Please.
Dude, by going for just one pip the risk reward ratio is just plain ****ed. Sure you may have a lot of winner trades, buy you must also mind the spread which works against you, and if you use a overly tight stop-loss it can be easily be taken by a random move, specially in the JPY pairs which make 25 pip moves very quickly. Be careful
