Risk Reward Ratio For Intraday Trading

Analysis and predictions cannot be separated from trading. Without analysis, the risk of loss cannot be controlled. However, the analysis that traders make is also not always correct, so that sometimes traders experience losses. To arrange for the overall loss to be below the top, traders can use the risk to reward ratio.

The risk to reward ratio (RRR) is a comparison of the risk limit and profit target in each transaction a trader makes every time he opens a trading position. By knowing the risk and reward ratio, traders can improve trading performance and increase confidence in the trading system used. Traders can arrange it so that in one loss, all profits don't run out immediately and in the long term the difference between profits and losses on the balance becomes more surplus.

Before making a transaction, the first thing that must be done is to see if the conditions for opening a position have been fulfilled (price movements are according to analysis, capital and leverage are sufficient and according to ability, etc.). Then determine the amount of risk of loss, ranging from 2-5% of the capital balance. After determining the risk, then set your profit target or limit using RRR.

Apart from controlling losses, RRR can also help traders generate consistent profits. As a novice trader, maybe a trader can determine what range the trader's profit is. Therefore, traders need to use RRR with a higher reward ratio than risk, namely 1:2 or 1:3. With this higher ratio, traders have the opportunity to earn consistent profits even though the winning rate for traders is low, or below 50%. This is because a trader's transactions have 2-3 times the chance of profit, so they remain profitable overall even though there are fewer profitable transactions than losses.

Watch the full video and details below!


More info : 

Free material soft copy contact 081 258 066 174 wa/call 

Private info / paid premium class (guided forever until consistent profit and independent). 

Whatsapp/call 081 233 593 672 Or direct access to our web www.wijayatrading.com

Comments

Post a Comment

Popular posts from this blog

Tingkatan Seorang Trader

Image
Sebelum menjadi trader sukses, perlu dipahami bahwa ada berbagai macam tingkatan trader forex yang harus dilalui. Tingkatan-tingkatan tersebut biasanya dibedakan dari beberapa kriteria. Jika dilihat dari pengalaman, pengetahuan, cara berfikir, dan sikap mentalnya, seorang trader dapat dikategorikan dalam 5 tingkatan. Trader Pemula Seorang trader pemula pada umumnya masih merasa asing terhadap pasar forex. Trading forex dianggap sesuatu yang baru dan mungkin agak unik atau mengasyikkan. Mereka cenderung ingin mengetahui segala hal yang berhubungan dengan trading dan pasar forex dengan cepat dan instan. Baik analisa fundamental maupun analisa teknikal dipelajarinya dengan cepat. Trader pemula selalu mencari dan mempelajari cara-cara yang gampang, sederhana, dan segera dapat digunakan untuk trading. Pada umumnya, mereka mengharap profit besar dari trading forex. Trader Profesional Dari sebutan "profesional" yang disandangnya, memang profesi utama trader di tingkatan ini adalah t
Read more

SNR, BEST TRADE STRATEGY!

Image
SNR (Support and Resistance) is fairly popular in the world of forex trading. This is one of the most frequently used techniques in technical analysis. Without it, traders will experience difficulties and even lose in carrying out trading activities. The support point is the point which is believed to be the lowest point of an asset in a certain period. While the resistance point is the point that is believed to be the highest point of an asset in a certain period. In simple terms, support and resistance are likened to the two most discussed attributes in analysis where support is a level that has the potential to withstand price declines. Meanwhile, resistance is a level area that has the potential to hold back price increases. These levels are used to determine whether the price will continue or reverse. Basically, SNR aims to find out the right area when taking a buy or sell position and determine the target price movement. The support area is generally an area used as a reference f
Read more