Hey whats up my peeps!? I have a question for ya’ll. Heres the deal, how am I able to figure out my risk to reward ratio? Like 2:1, 4:1, 1000:1? I need to seriously implement safe money management strategies here. Already read the one in pipschool but wanted insight, thanks!
First you need to establish your SL in pips (based in your analysis, trend lines, support and resistance levels, etc), for example 10 pips .
Now you have to see if yout target is at least two times your SL, that way you�ll have a 2:1 ratio. If not, then pass the trade, there will be many other opportunities.
If you decide to enter, then you need to establish the volumen of your trade, not risking more than 3% of your account, based on the 10 pips stop loss. If you have a US$1,000 account and you are trading EUR/USD, then 3% would be US$30, so the volume you have to trade is no mora than 0.3 (because each 1pip=US$3), that way if the market goes against you 10 pips and your SL get hit, you only lose US$ 30. get it? 
Thats great Gasanville, and thanks for that run down. So there is no formula other than your support resistance levels, pre determined by yourself based on technical analysis. And of course the ratio between the two.
support, resistance, trend lines, fibonacci, techincal analysis, etc…how you determinate your SL is up to you. The main thing is not risking more than 3% of your account.
Your risk V. reward depends on you and you system not what other people tell you. If you want to make 1 trade a year. You might have a S/L of 250pips. If you scalp you might be around 5-8 pips. If you swing trade it might be around 25-50 pips. It depends on you and they trading style you want to have. I would suggest no more than 5% of your account if you are willing to take a heavy risk.
during my last trade I realized that my stop loss is in the same distance as my take profit. wow - I was surpriced… why I’ve set it this way? because of oscillations… it happend many times that some peak closed my trade and then it run where I’ve supposed. is there a way how to avoid it please?
I think the more you practice and look at different systems, you’ll be able to identify better trades and consequently start seeing a better risk/reward ratio. I’ve been taking a lot of positions in demo at 1:1 or worse, just to get into the action, but as I spend more time in the charts I’m starting to see more favorable trades. Unfortunately I’m seeing them in hindsight, but being able to identify them adds to experience going forward. Patience is definatly a virtue in forex. You need the wisdom to evaluate a trade from different perspectives that only comes from practice.
When you say your risk/reward ratio is XXX, do you usually factor in the spread too?