yes, it was...and got the 10 pit profit...very thankful...any trading for you today? kinda wondering how many feel this 40-10 risk/reward ratio is too risky?
Cabletrader said it best: It all comes down toyour winning % when the risk/trade so heavily outweighs the potential gain. If you win better than 80% of your trades, you will be net profitable over time. If you win only 50%, you will soon go broke. Figure it this way - every 1 loss will burn the profits from 4 winning trades. That is, for 5 trades, with 80% wins = trade 1 = +10 trade 2 = +10 trade 3 = +10 trade4 = +10 trade 5 = -40 Net = +/- 0 So you need to win 80%+ (more than 80%, not 80%) to be net profitable.
Uh...everyone. Your risk/reward ratio is skewed, especially since you are not scalping as cabletrader referenced. You are setting your TP and SL at time of trade which can be dangerous. Look at it this way, would you risk a $4 dollar bet to make $1 when the odds are not 1:4 in your favor? There is a good section at babypips about money management which I think you should read as well: http://www.babypips.com/school/money_management.html
no, not bored at all...right now, I've got EUR/USD and GBP/USD on my trading screen and have been favoring trading the GBP/USD (love the potentional big moves and trading range)...also, I've got the ES (mini SP 500) on my trading screen also...that's it
well said to you and Cable trader...I guess that is my ultimate thinking...keep the winning trade % at 80% or better hopefully!!!...note: I would like to decrease the stop and increase the profit goal as I 'get better' at reading trades...right now, 10 pips is good for me...
Looks like GBPUSD is gonna hit some reisitance at 1.6450-55, which is around the 61.8% on the hourlies of the recent high back on 6/29. If it takes that out, next level could be 1.6546 which would be 76.4 level.