Risk: Reward Ratio and why it Matters
A very important concept that we @ Global FX Trading continue to stress is why you want to maintain a 2-3:1 reward: risk ratio. If you can achieve that ratio consistently, it will help you become more profitable over time, reduce the stress of believing that you have to “win every trade” and allow you to concentrate on proper risk management, relative strength and weakness, position sizing and an objective exit strategy that lets the market take you out.
Sz. Daniela