Give your self a 100pip SL and a 1pip TP on all your trades and you’ll average 99% win rate…sounds high, but look at the maths.
Risk reward management is a secure way to do trading without it we can loose much as we expect. Stop loss on reasonable pips according to your lot should use so that you can make your self safe.
Its really useful and surely its must be important rule of every business that we run moreover in investment business type like forex trading where fund that was invested is really crucial when not manage properly to get loss result then the real money will gone , nothing back . Then eventually we will be get disappointed as ignore about the risk and reward management
At least 2 pips cuz 1 pip goes on spread so you’ll always be in loss with that strategy.
Nope, I won’t try this, one SL and profit of your 100 trades goes to break even. Waste of a lot of time as well.
It’s relative to win rate, not a profitable approach. It was actually a sarcastic comment, but forget where I was posting :51:
Risk to reward management is important but sometimes strictness cause a wining trade go lost or hit the BE. My last two trades, 1st Chf/Jpy got to +103 then bang, my TP was 2 : 1, got nothing from it, then GJ, the other day, very very same result. Now I’m aiming to target 80-100 pips as my TP.
Different trader could be different to look risk reward ratio, some traders prefer to use higher TP than SL point so if you lost more than your won then it is still possible to gain profit, example with risk reward ratio = 1:2 or 1:3. But for another traders, they prefer to set higher SL point than TP point with consideration that it’s better to hope for getting profits than losses. If this traders could gain more than 80% in profit so it can give profit as overall too. If SL point is higher than TP point then it is harder to be hitted.