Just curious what most professional day traders risk when they are placing trades. I have been working with about a 5 pip stop loss and I allow my trade to stay in the money until I see a weakness in the trend or momentum. Normally lock in at least a partial gain or move stop to break even if the market moves about 10 pips in my direction.
What do you do?
Risk/reward is meaningless unless you know the Win % as well. One without the other is an incomplete picture.
risk reward ratio i use is 1 : 1 or 1 : 2
it mean if we use stop loss 20 pip, i must take profit 20 pips too
it’s the best reward ratio…
maybe you can try a strategy and use the risk reward ratio 1 : 1… good luck
Hi. There are a lot of experts here. Would you tell me the right point to stop when I see a weakness in the trend or momentum. How many pips I can loose painless.
Thanks.
Have a great trading.
what do you mean by ‘lose painless’??
about the same as the unicorn
Rhody’s right; R:R on itself is a very incomplete picture.
If your win rate is low, you will need a higher R:R to be profitable
If your win rate is high, you’ll still be profitable with a lower R:R
Also, may I say ( as a swing trader ) that aiming for random/arbitrary R:R may not be the best idea (as the market doesn’t care where your SL’s and TP’s are).
A better method in my opinion is to manage the trade based on previously tested psychological & S/R price levels.
An example of psychological price levels are Big Round Numbers ( e.g 1.6000 for GBPUSD )
Cheers
Hi, guys. sorry for my English. I mean money management. To lose not much and risk safely. What percent have to be lose/profit/account.
thanks in advance.