Why the risk reward ratio is important
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  • #1 Collapse

    Why the risk reward ratio is important
    Hi friends hope you all are fine good morning to all of you. According to my knowledge The risk/reward ratio in trading is the relationship between the size of your stop loss to the size of your profit target. So, for example, if your stop loss is 50 pips away from the entry price and your profit target is 100 pips away from the entry then your risk to reward ratio is 1:2.
    The risk/reward ratio is no doubt, a very important aspect that should always be considered before taking any trade as an integral part of a good risk management strategy. This may seem like a no-brainer, but it’s amazing how easy it is to forget about it once you spot a good looking chart pattern or a nice trading signal. Best wishes. Thanx to all of you
  • <a href="https://www.instaforex.org/ru/?x=ruforum">InstaForex</a>
  • #2 Collapse

    Risk/reward ratio is very important to decide your earning level. For example you are trading but dont know about this term, you may not be able to calculate your possible loss and expected profite. If a trader work qith more clarification, he could have better results as compared to blind traders.Always set out this value on minor level like risk is 2-3% of total and reward should be upto 4-6%. Stay connected

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    • #3 Collapse

      The ratio of risk to reward for every should be such that makes the trade worthwhile consistent risk to reward ratio implies good risk management and results to less risky trading. it is very important to always evaluate the risk reward ratio such that the trade would be worth it evaluating risk reward ratio help the trader in understanding what to risk and what profit to expect in a trade because Forex trading is the kind of business that requires a lot of object analyse evolution such that the right result would materialized as desired.
      My latest update:
      https://forum.mt5.com/showthread.php...1#post15181633

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      • #4 Collapse

        Sir mt5 the same time as I have never traded options but I think they are at risk even though mt5 Forex spot trading with 1: 100 leverage is good provided we are experienced enough and can see the right level of entry and record profits at the right time requires a lot of patiencethan mt5 Forex If you open a trade there is no more dangerous way back the only thing I learned that you have to be a good broker trade only during the opening of each market thanks for you

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        • #5 Collapse

          Dear fellow, You can look for trades with a risk reward ratio of 1:2 and remain a consistent loser (and I'll prove it to you later).

          Similarly: You can look for trades with a risk reward ratio of less than 1 and remain consistently profitable.

          Why: Because the risk reward ratio is only part of the equation. But don't worry: In this post, I'll give yo the complete picture so you'll understand how to use the risk reward ratio the correct way.

          The risk reward ratio measures how much your potential reward is, for every dollar you risk.
          For Example: If you have risk reward ratio of 1:3, it means you're risking $1 to potentially make $3. If you have a risk reward ration 1:5, It mean you're risking $1 to potentially make $5.

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          • #6 Collapse

            Forex trading business risk is a part of don't worry about it because Forex trading business is totally based on your knowledge about Forex trading and more for with your planning abilities and your on thoughts on skills and then you overcome your risk and change into your first manners and you become a successful and valuable today in forex market so far so far more for with motivation in your important thing is that your or not because not used in so always work with your hair put your best efforts were here first of all this things related to Forex then yourself and your trading account

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            • #7 Collapse

              Risk Reward Ratio is important because its the back bone for forex trading. If you do not understand the importance of risk management then you wont be able to earn profit form forex. A trader must know how much money he is risking in one trade to earn what profit percentage.

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              • <a href="https://www.instaforex.org/ru/?x=ruforum">InstaForex</a>
              • #8 Collapse

                Hey there, risk and reward is very important in trading in how much we are willing to loss and get profit in a trade. Not only that, proper money management also play a part in it, how much lot size you put depends on your capital. Lower the risk and higher the reward is always the best fin trading.

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