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