ARE YOU A PROFITABLE TRADER?
In this chart you will how if you are a profitable trader or not based on your Winning rate and how to manage your RRR .
Risk and Reward Ratio ( RRR ) falls under the umbrella of Risk Management. To trade the financial markets, a portion of your funds will be at risk.
What risk management does, is ensure you only take the right risks to help you achieve your goals. Using techniques like risk and reward ratio will have a positive effect on your results and put you in a better place for long-term success.
-The ratio helps assess the expected return and risk of a given trade.
-An appropriate risk reward ratio tends to be anything greater than 1:3.
Learn how to manage your risk. Yes we can gain profits but do you know how to manage your losses? RRR will also preserve your capital/big losses.
Don’t Be Greedy
Set some limits on your trades
Consistency is the Key.
