What do you think of Risk/Reward ratio?
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Thread: What do you think of Risk/Reward ratio?

  1. #1
    I've read a lot about risk/reward ratios. Plus it makes sense. However I believe it is hard to get a good risk/reward trade. If for example I wish to perform 1:1 risk reward then I will risk 40 pips to make 40 pips. That's not hard to do. Even 1:2 risk reward it maybe not that hard. After per week you will find a reward of 80 pips should you risk 40 pips. But if I would like to play with 1:3 it is a bit harder. Not every transaction gives you a reward of 120 pips should you risk 40 pips.

    Can there be anyone who is good at playing risk/reward trades and would not mind to discuss his understanding?

  2. #2
    Quote Originally Posted by ;
    however as you don't know the odds of this trade, all of the mathematical analysis gets fairly useless.
    That is a killer phrase!!!

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