Good Risk to Reward Ratio

The important thing in trading is money management and how good the reward ratio is.

the good risk to reward ratio is  1:2 or 1:3. for instance, if we set the Stop loss 50pips, then the target profit will be 100pips or 150pips.


let's say.....you put 100 of entry.


100 of entry.
    win - 30
    loss - 70


if we look at the win, only 30 win, loss entry is 70. how can we make money while loss is greater than profit.

we take as an assumption of 1usd per entry pip.

     30 win x 150pips TP  x 1usd  = $4500
     70loss x 50pips SL x 1usd     = $3500

Nett Profit = $1000


we still can create money when we have a good risk to reward ratio. i believe all traders have their own strategy to get profit in forex, but it is good to have a good money management in order to succeed in forex trading.




dosudongos enter

A forex trader who enjoy doing forex naked chart and make profit with forex expert advisor.Also enjoy to socialize with other forex trader in the world.