Do you agree with the statement below?
“You must look for trades with a minimum of 1 to 2 risk to reward so that even if you lose more than half the time, you can still be a profitable trader.”
If that’s the case, why stop at 1 to 2 risk to reward?
Why not go for 1 to 1000 risk to reward?
Why not risk 10 pips to make 10,000 pips?
All you need to do is have a stop loss of 10 pips, and have a target profit 10,000 pips away.
You’re a consistently profitable trader.
Well, the truth is this…
The risk to reward ratio is an illusion. It is meaningless without taking into consideration this one thing — and I’ll explain more in this episode of AskRayner.
If you were to point a gun to my head and ask me…
“How do you find the best risk to reward trading setups?”
Then here is my answer…
Do you want to learn more?
Then go read these posts because it will teach you about position sizing and risk to reward.
The complete guide to forex risk management and position sizing.
Do you have a question for me?
Just let me know in the comments section below and I’ll do my best to help.
I look forward to hearing from you!
once we have identified target on DAILY time frame,is there any way to know HOW many days it will take to achieve target.
There’s no way to tell for sure.
Having a regular job, how to watch the currency movements. Is there is fixed time that
we can work on.
Trading off the Daily timeframes would suit you since you can just trade off the daily candle close.
Hello sit Rayner. I am still on creating my risk model. I am still puzzled in choosing MDPT (maximum draWdown per trade) or percentage cut. considering i am novice in some of the set up what would be a good practice. do u buy on tranch and sell on tranch or one time order?
I buy/sell all in one order.