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DAY 7 - Risk to Reward Ratio

Why is that many traders will take a trade with a 100 tick target, get 95 ticks up, move to break even and do nothing else because its a free trade.
Yet if you told them to get out and take a new position with a 5 tick target and a 95 tick stop they will say "Are you out of your mind?"
The point is you have to be flexible in your profit expectations and assess your R/R not only at the time of entry, but also when the trade is running.
In my opinion, it's not about how many pips you make or how…
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orto leave comments
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Risk vs Reward

Here is something interesting I read on twitter, the other day:
Why is that many traders will take a trade with a 100 tick target, get 95 ticks up, move to breakeven and do nothing else because its a free trade.
Yet if you told them to get out and take a new position with a 5 tick target and a 95 tick stop they will say "Are you out of your mind?"

The point is you have to be flexible in your profit expectations and assess your risk vs reward not only at the time of entry, but also when the trad
Read full story
Translate to English Show original
schweizerkatz avatar

You are indeed very correct and TP is just as important as entry and SL. Ideally trader could TP either on price action and/or opposite liquidity levels, but if they try to catch long term trend move there is one reason why they should ignore anything in between as price often give fake/deceiving setups resulting of trader quitting even though target expectations were much further. Also unfortunately from my own experience quitting on price action and re-entering on another can result of missing re-entry and also every entry have its own probability. But long term target is the only exception.

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