Hi Fellow Traders
The greatest tool in your arsenal is your Risk/ Reward rules when evaluating the potential expencency and outcome of each scenario. By using this to protect your account it may help you to survive long enough to be profitable.
Risk/ reward is quite simple. If I risk $1 on a trade, I need to make on average $1.50 to be profitable. In other words, my risk is 1 and my reward 1.5, therefore it is a 1:1.5 risk/ reward ratio, which is acceptable to potentially enter a trade if it meets your criteria.
You want to try an average between 1:1.3 and 1:1.7 when looking for trade opportunities.
The Risk/ reward tool on Tradeview is excellent for evaluating and getting a proper picture of the potential upside and downside before making a decision.
I hope you enjoy the video and that I have been able to contribute to your potential success as a trader.
Please feel free to comment and reach out if you help.
Regards
Wayne_G
The greatest tool in your arsenal is your Risk/ Reward rules when evaluating the potential expencency and outcome of each scenario. By using this to protect your account it may help you to survive long enough to be profitable.
Risk/ reward is quite simple. If I risk $1 on a trade, I need to make on average $1.50 to be profitable. In other words, my risk is 1 and my reward 1.5, therefore it is a 1:1.5 risk/ reward ratio, which is acceptable to potentially enter a trade if it meets your criteria.
You want to try an average between 1:1.3 and 1:1.7 when looking for trade opportunities.
The Risk/ reward tool on Tradeview is excellent for evaluating and getting a proper picture of the potential upside and downside before making a decision.
I hope you enjoy the video and that I have been able to contribute to your potential success as a trader.
Please feel free to comment and reach out if you help.
Regards
Wayne_G
