Note: When first implementing this «specialist» trading approach it might be best to just aim for a strict 1:1
risk reward ratio just to build a little confidence and build your trading account up a little.
Not exact matches
As always, patience to wait for proper trade entry points with favorable
reward -
risk ratios is important, so we are not interested in chasing ETFs
just for the sake of action.
At the current levels, the
reward to
risk ratio just isn't in line to consider taking on new positions.
With a potential
reward of
just over 2 points, combined with 1 point of
risk, this setup still provides you with a decent
reward -
risk ratio of better than 2:1 (
just over 2 points
reward with 1 point
risk).
If you had a predefined profit target set at a 1:2 or 1:3
risk reward ratio, but as price gets close to that target you move it further away because you «think» price will keep going for an even bigger gain... that is greed, and it will almost always result in you making LESS than you would have if you
just exited at your predetermined profit target.
we have to take decision at the end of 6 months when
risk reward ratio as per our analysis say it can not give more than 20 % annualized return from there onward and on the other hand some other cheap stock are waiting for us... Even if one stock which we
just sold after earlier will become multi baggar does not mean law of probability say us to hold it..
The
risk to
reward ratio is best with this pattern when all the lower shadows are short, and the third candle in this formation closes
just above the 50 % mark of the first candle of the formation.
only one thing I don't understand: If you need 50 % of wins to BE on a 1:1
risk:
reward ratio, 33 % on a 1:2 r: r and 25 % on a 1:3 r: r shouldn't you need
just over those figures to make profit??
The above quote stresses the importance of seeing each trade as a
risk reward ratio, rather than
just a potential profit opportunity.
They believe that by
just having a 1:3
risk:
reward ratio they can make their trading dreams come true.
Just as the debate about statins is not particularly pointed, we are getting to know the
risk reward ratio, and as we do, its rather clear that mass prescription is not sensible.