Risk Reward Ratio is not used for making money
Page 1 of 843 123 LastLast
Results 1 to 10 of 21

Thread: Risk Reward Ratio is not used for making money

  1. #1
    I believe that old advice such as the risk/reward ratio ought to be regurgitated, as with bodybuilders that needs new inspiration for going to the gym and actually push themselves leaving it yet again to be a habit.

    I also believe that a lot of traders in here think the correct risk/reward ratio is there for earning you money. That is true to some distinct but it will something more significantly, it's keeping you away from loosing money. What's that?

    You are doing the exact opposite from what beginners do!
    We all know beginners will get excited using a small winning trade and take it. These babies will suffer from a loosing trade and will hope to get a turn back on price. Leaving an account more than 50% plus they receives a margin call that is very common in Forex, and it occurs more frequently than we'd like to understand. See, that's totally the opposite from beginners killing their account!

    A true trader does not laugh about people killing their accounts; honestly we think it's sad, because we understand that there is enough money for everyone in here provided that the money/price circulates. And where can the price circulate more than in forex?

    It's like bodybuilders who are thinking about getting large in a very short time period and after that they are going to rupture or disloe something, making them from their gym for months... If they're lucky enough to come back for another attempt they will likely do it again.... Thank great that in the market it's just money and we can buy yourself into the match again without being physically hurt. Imagine if someone came to your house and hit you in the face with a bat every time you had a larger loss than win (or perhaps it'd helped you J ). I bet you wouldn't look pretty doh.

    Would you understand why traders fail?
    The people that are attracted to the particular marked are gamblers, we like money and lots of it. We are not edued and hate to eliminate money. We just can't see how loosing money may provide you more. Since you need to break some eggs make omelette. You have to use some to create some. Utilize SOME, not all. I'd rather take a loosing trade or split even than 99 percent of my profit level, which I've calculated and prepeared for several reasons.

    Thus if you're on the side this season you need to get a grip and do a little homework. Get your method with proper risk/reward and exchange using a account. Whenever you're profitable or disciplined you may keep on trading larger (I understand you should not trade larger if you're in zero, but I reckon I can't hold you from the gym anyways).
    But please, do not attempt to get big quickly, you'll kill yourself.

    I will bet money on, which you aren't 100% disciplined if you're in zero or minus, and that's definitely a factor you are able to do something with!

    Remember that 1:3 ratio is for beginners and 1:4-1:5 for professionals who like too puzzle. I've now two systems which have generated 47% and 53% winning trades (1:4,5 1:5)on the previous 100 trades. So there is no good reason for you not to earn a method such as that. I am just an average C pupil...


    Being completely honest with yourself is a Fantastic workout
    -Sigmund Freud

  2. #2
    Quote Originally Posted by ;
    Hi Wayne

    I'm confused by it too.

    Trying to achieve a definite R:R is building a trading equation backwards. The reward is only a guess. Settling for a specific reward, and refusing to accept anything more or anything less is rather limiting.
    Just.... I agree. Like I said previously, Rather than attempting to force my trading to acquire a set outcome, I would rather exchange the very best I can (and in a fashion that is sustainable for the longer term) and just let the profits accumulate.

  3. #3
    Quote Originally Posted by ;
    Attempting to attain a definite R:R is constructing a trading equation backward. The reward is simply a guess. Settling for a particular reward, and refusing to take anything more or anything less is rather limiting.
    Reward isn't necessarily a guess - if you exit using a target profit, then it is reasonably accurate. I simply don't think it's the right way to start it. It's focusing on the wrong thing Just like you say. I can't think of a better analogy, but it's like focusing on the symptom rather than the underlying reason. If we just apply good egies, profit will follow.

    It reminds me of poker where people could place their performance stats and ask which ones can be improved, rather than submitting hands and talking via their thought-process. Concentrate on egy, and the rest follows.

  4. #4
    Expectancy and risk-reward ratio are for the theorists and beginner traders. Great concept that traders should be aware of, but it will not necessarily guarantee victory.

    The trick is to discover a formula, tool and timeframe that fits your personality.

  5. #5
    Quote Originally Posted by ;
    Expectancy and risk-reward ratio are for its theorists and novice traders. Good notion that traders should know about, but it will not necessarily guarantee victory.

    The secret is to discover a formula, tool and timeframe that fits your personality.
    Hello TraderT

    I wish I had said that...

    A very clear and succinct set of statements about Risk/Reward ratios

    .

  6. #6
    Quote Originally Posted by ;
    Hi

    I'm sorry..the issue with published text is that you can not see my smile when I type.
    Or did you mean that you had a greater Risk level so you aren't an optimist?


    PS If something is confusing since it can be translated in a wonderful way and a not wonderful way, then please be assured that I have always meant it in a wonderful manner
    Hi Jacko,

    That is very good to listen to and ditto.

    I always have a low risk / high payoff and I am also possibly the most dull trader you will ever meet. I spend equivalent amounts of time in excel as my platform.


    Anyhow...
    That which I do at the stock and forex market is solely from back studying and executing trades which have proven positive benefits and as I explained before I've yet to see that my entry/exit numbers be tweaked into a greater profit with a equivalent or low r/r degree. So that is most likely right, I'm an optimist. But isn't that vital for trades?


    I've this from trading stocks in which my main income is and I am not sure whether that is the ideal process in forex but it's workingout. To my potential? Not sure...


    Over to something else, I've seen your posts before and I have one query. How in the world can you trade a few times every week?
    I've tried that several times but it feels so WRONG!

    I do not care about systems and all that, plogically. How can you do it? Is this something you've learnt over time?

    And can you earn more because % winners have increased or real pips or percent?


    Cheers,

  7. #7
    Quote Originally Posted by ;
    Over to another person, I've seen your posts before and I have one question. How in the world can you only trade a few times a week?
    I am definitely not Jacko, but maybe I can shine some light here. I exchange the 4h and slower, and could only ordinary a few trades per week. It is actually quite relaxing, and satisfies me much more than when I was trading quickly charts. Some traders prefer scalping, others favor riding longterm trends. I can see how such slow trading could be dull for many traders, but it's ideal for me. I really don't think that it's any less profitable either, at least not for me personally.

  8. #8
    Quote Originally Posted by ;
    Just.... I agree. Like I said previously, instead of trying to induce my trading to get a set result, I prefer to exchange the best I can (and in a fashion that is sustainable for the longer duration ) and only let the profits collect.
    hey jacko. .

    What's your name in dailyfx forum. .

    cheer vincy balbao

  9. #9
    The notion of achieving High Definition per risk is excellent, the fact of getting it isn't so easy.

    For me personally I enjoy the idea of achieving High Definition, however my planning doesnt ask for it per se since I cannot expect it to happen, nobody can.

    In the conclusion I trade for it by allowing transactions to grow. I have exit plans in place where I consider profits and let a small part of my commerce to operate, you'll be amazed over time how the cumulation of a small lots can build, with a fantastic deal less of emotion built in.

    New traders maintain that the matter in a different light since they see the following. 10x R/R at 5% = $$$$$$$$$$$, they don't calculate reality to the equation. In the end it isn't the be all and end all trading and you will find a fantastic deal of other bits needed to be profitable over the long term.

    Razor

  10. #10
    Quote Originally Posted by ;
    Hello

    I wish I had said that...

    A very clear and concise set of Announcements about Risk/Reward ratios

    .
    Hello Jacko, I wish I knew these concepts don't work, when I entered the markets. Now I still make these errors, but keep reminding myself to cut down . The journey to success is much longer than I thought it would take, had I know it would take so much time, money and sleepless nights, I might have given up at the start.

    Incidentally, Jason Janovsky's publiion (Art of the Trade), has lots of good pointers, which includes Buy/Sell 50% retracements in the major trend.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.