INTRODUCTION: I am so proud to write about the risk to reward ratio on this forex community. I am proud because it will help more traders, not even for the contest alone or what it is going to fetch, but to help other traders to see the brighter light/side of trading, and devise a better means of trading, managing and protecting their trading at the same. There are lots of traders that has come across my path in my more than ten years of trading career, there are more challenges that has been seen, more argument has been made, and lots of reality has been devised. This is why i will advice everyone reading this article to pay full attention, because it will surley help your trading career forever.
WHAT IS RISK TO REWARD RATIO? Risk to reward ratio is a very large context in the market trading, and the most painful part is that; many traders hears it all the time, but they do not use it, and that is the main reason why they are losing in the market. Risk to reward ratio is very simple, it only contains the two vital involvement of the traders (Risk and reward).
Risk: By my simple definition, the risk is the money we are risking to trade a particular trade. Taking for instance, you e…
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