G’day babypips. So excited!
Glad to see an Aussie on the site. Good luck with your trading.
Cheers
Blackduck
baby pips is a good place to become a good trader by learning , so just focus on there and trade in a demo account.
you can start with baby pips school which is mainly considered as the best place for education, so be educated from this trading place by learning and trade well.
hi and welcome
Welcome to the community, you are in the right website. I wish you a great journey of learning the art of trading. Have a good time.
It is very important to maintain the risk of trading. If the risk is not managed, the chances of loss are high. If a trader does not maintain a minimum of 1: 2 risk-reward, he will never be able to cover the loss. Beginners and pro traders should manage risk rewards. Because the success of trading lies in the risk-reward.
You are correct with this statement. However.
Whilst this comment is well meaning even this is unrealistic.
Risk reward has to be in proportion to the value of your capital. The other variable in the equation is probability, which most traders fail to acknowledge. If you have good risk reward you have poor probability and in most cases you will lose. If you have great probability your risk reward will be poor. Think about it, Why would someone take the other side of your trade if the risk reward is good?? What’s in it for them?? There has to be a trade off and that trade off is you get great risk reward and he gets great probabilty you will lose.
What needs to happen is a trader MUST understand money management more than anything else. Not all trades will give you a 2:1 rrisk reward and a trader has to be able to recognise when the trade is done and you are not going to get that magic 2:1 risk reward.
Proper stop loss placement is key and being discplined enough to say “I am out of this trade because I was wrong or this is all the market is going to give me.”
Hope that helps.
Cheers
Blackduck
Hi @Blackduck,
Thanks for the the information. I’m pretty a newbie to the trading. What knowledge can help me to get great probability?
Cheers,
Aussie-Baby
What ytou need to undersatnd is where you place your stop loss in relation to a break out of a trading range or a trend reversal.
Have a look at this chart. It is not a great example of what I am trying to explain but if you study what I have written on the chart you may get an idea of what I am trying to explain to you.
If you have any questions just reply to the thread.
Cheers
Blackduck
It’s good that you have chosen forex trading as your career. But more than that, it is important to make sure that you don’t follow someone blindly. You might consider getting in touch with a mentor but without knowledge, even a mentor won’t be able to help. Focus on learning and improving yourself as a trader.
Glad to have you on the forum. Put your excitement to a good use with the pipsology school and mark the beginning of your trading journey the right way.