52 pips,$52 minilot,$520 standard lot using Risk to Reward Ratios
Hi folks, how you'all enjoying this lovely weekend? Glad to take a break from trading and do some relaxation, and maybe a working vacation. In Nigeria, we call it an extended siesta.
[08:37:55] Stalion : BUY GBPUSD @ 1.9782,STOP LOSS @ 1.9747, TARGET POINT @ 1.9869
So, like we said, risk management is very important, which is amongst the 3 pillars of trading, STRATEGY AND PYSCHOLOGY. They are like the tripod of live tripod. The best traders win 40 to 60 percent of the time and scale in their winnings in order to maximize profits and minimize losses.
At the time we bought at 1.9782, we were at the begining of a 1-2-3 bottom and got stopped out at the 3 point level(lowest low). Price then started moving back up to our projected target point from 1.9869 up to a high of 1.9957.
From our risk to reward calculation, if we risk 35pips on our first foray, we are willing to be rewarded with 87 pips as our reward.
Reward=Target Point-Entry Point=1.9869-1.9782=87 pips
Risk= Entry Point-Stop Loss=1.9782-1.9747=35pips
Risk to Reward Ratio=87/35=1:2.5
A 2 to 1 risk to reward ratio is very prudent when calculating whether to enter a trade or not, and whether the risk is commensurate with the reward.
Eventually, even after losing 35 pips on the first entry, we still entered and made a killing of 87 pips, which neeted us a net profit of 52 pips.
87pips-35pips=52 pips.($52 minilot,$520 standard lot)
Remember,folks, Patience is a virtue in trading, that is how seasoned traders make money.Like the Panther.
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I have just found this thread and it looks like it is just what I am looking for. Thanks for posting forexgreenland. How do I join the chat room or find more information about this method of trading?
Hi DMX,howz it going? Just google ''forexgreenland'' if you want to join the chat room.Just abiding by the rules of this forum,mon ami.
As a trading coach, I offer one on one trainings and expositions on these strategies and techniques in live forex trading. This method of trading is more of a discretionary and proprietrary system that is a conglomeration of diverse strategies molded by experience and years of practice.
Please feel free to ask any questions or make any comments