Risk Reward Ratio

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#OPINIONLEADER#

 

If you are only risking 1 to 3% on each trade, then you should be looking for trades that

Give you profit potential of at least 2 times that. Most traders in fact look for trades with

A profit potential of 3 times their risk or more, so if you are risking $100 on a trade, you

Better be able to see a profit potential on it of at least $200 or it is not worth pursuing.

 

NOTE: Did you know if you lose 50% of your money, you’ll have to make 100%

(Double your money) just to break even? So, manage your risk!

 

Scaling, A lot of successful traders use scaling techniques to enter and exit positions as it allows Them to focus more on a general market move instead of trying to pin-point the exact Price level to get in at. Though there are a few ways to do this below is a method to give you an idea on how it can impact your trading plan.

 

No central marketplace, Unlike regulated futures exchanges, in the retail off-exchange Forex market there is no Central marketplace with many buyers and sellers. The Forex dealer determines the Execution price, so you are relying on the dealer’s integrity for a fair price.

 

#OPINIONLEADER#

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