Even if you're win rate is about 40% as long as your risk to reward is like 1:3 and above you will be in profits by the end of a week and months Some new traders do not know this; they want to scalp, so they set trade targets of 1:2 or even 1:1 RR, thinking the market will always honor it. The market doesn't. Anything less than 1:3 RR is a bad trade. I thin even 1:3 might not be a really good ratio to start with. New traders can aim for 1:5 ratio as most of their traders will end up in loss and they need someplace to recover those profits. Aiming for higher profits means aiming for higher fluctuations which will take immense research time and one would also need to constantly keep monitoring the charts. If the profit taking levels are much higher, one will avoid taking multiple trades as they will have to keep the trade open for a good amount of time. This itself would make them minimize loss as they would be placing minimum orders but aiming for higher profit percentage. I am sure, SL will be hit multiple times before they can reach the TP and this will teach them how to use the risk to reward ratio to keep their trades aligned. 1:1 ratio is so harmful for the portfolio that it can entirely wipe the account in just a few trades. Markets will never honour such traders as all they want is profit without actually considering the risk involved. I would love to meet these traders who have 1:1 ratio but still are able to book profits.
Even if you're win rate is about 40% as long as your risk to reward is like 1:3 and above you will be in profits by the end of a week and months Some new traders do not know this; they want to scalp, so they set trade targets of 1:2 or even 1:1 RR, thinking the market will always honor it. The market doesn't. Anything less than 1:3 RR is a bad trade. I thin even 1:3 might not be a really good ratio to start with. New traders can aim for 1:5 ratio as most of their traders will end up in loss and they need someplace to recover those profits. Aiming for higher profits means aiming for higher fluctuations which will take immense research time and one would also need to constantly keep monitoring the charts. If the profit taking levels are much higher, one will avoid taking multiple trades as they will have to keep the trade open for a good amount of time. This itself would make them minimize loss as they would be placing minimum orders but aiming for higher profit percentage. I am sure, SL will be hit multiple times before they can reach the TP and this will teach them how to use the risk to reward ratio to keep their trades aligned. 1:1 ratio is so harmful for the portfolio that it can entirely wipe the account in just a few trades. Markets will never honour such traders as all they want is profit without actually considering the risk involved. I would love to meet these traders who have 1:1 ratio but still are able to book profits.

Even if you're win rate is about 40% as long as your risk to reward is like 1:3 and above you will be in profits by the end of a week and months Some new traders do not know this; they want to scalp, so they set trade targets of 1:2 or even 1:1 RR, thinking the market will always honor it. The market doesn't. Anything less than 1:3 RR is a bad trade. I thin even 1:3 might not be a really good ratio to start with. New traders can aim for 1:5 ratio as most of their traders will end up in loss and they need someplace to recover those profits. Aiming for higher profits means aiming for higher fluctuations which will take immense research time and one would also need to constantly keep monitoring the charts. If the profit taking levels are much higher, one will avoid taking multiple trades as they will have to keep the trade open for a good amount of time. This itself would make them minimize loss as they would be placing minimum orders but aiming for higher profit percentage. I am sure, SL will be hit multiple times before they can reach the TP and this will teach them how to use the risk to reward ratio to keep their trades aligned. 1:1 ratio is so harmful for the portfolio that it can entirely wipe the account in just a few trades. Markets will never honour such traders as all they want is profit without actually considering the risk involved. I would love to meet these traders who have 1:1 ratio but still are able to book profits.

Even if you're win rate is about 40% as long as your risk to reward is like 1:3 and above you will be in profits by the end of a week and months Some new traders do not know this; they want to scalp, so they set trade targets of 1:2 or even 1:1 RR, thinking the market will always honor it. The market doesn't. Anything less than 1:3 RR is a bad trade. I thin even 1:3 might not be a really good ratio to start with. New traders can aim for 1:5 ratio as most of their traders will end up in loss and they need someplace to recover those profits. Aiming for higher profits means aiming for higher fluctuations which will take immense research time and one would also need to constantly keep monitoring the charts. If the profit taking levels are much higher, one will avoid taking multiple trades as they will have to keep the trade open for a good amount of time. This itself would make them minimize loss as they would be placing minimum orders but aiming for higher profit percentage. I am sure, SL will be hit multiple times before they can reach the TP and this will teach them how to use the risk to reward ratio to keep their trades aligned. 1:1 ratio is so harmful for the portfolio that it can entirely wipe the account in just a few trades. Markets will never honour such traders as all they want is profit without actually considering the risk involved. I would love to meet these traders who have 1:1 ratio but still are able to book profits.