Comments on: My Forex Risk Management Tips http://www.forexindicator.org/my-forex-risk-management-tips.html Best Online Forex Indicator Guide Tue, 31 Jan 2012 06:01:15 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Kelvin http://www.forexindicator.org/my-forex-risk-management-tips.html/comment-page-1#comment-1560 Kelvin Wed, 15 Sep 2010 10:53:13 +0000 http://www.forexindicator.org/my-forex-risk-management-tips.html#comment-1560 Hi Wallace Welcome to this community. As for your question about the risk reward ratio, it really boils down to your planning before you enter your trade. Let say that you have identified a good trading opportunity to go SHORT, you should not enter the trade until you have identified where you want to place your stop loss and your target profit. When you have identified the target profit which could either be a major support or resistance or the end of a price projection, you will know how much is the profit you can get from the trade. If the profit and stop loss can make up a risk reward ratio of 3: 1 or 2: 1 depending on your personal target. You should then enter a trade. If you find that the risk reward ratio is too low, you can then abandon the trading opportunity and look for another one. That's why discipline is very important in trading. I hope that I have answered your question and do feel free to comment if you have any other doubts. Hi Wallace

Welcome to this community.

As for your question about the risk reward ratio, it really boils down to your planning before you enter your trade. Let say that you have identified a good trading opportunity to go SHORT, you should not enter the trade until you have identified where you want to place your stop loss and your target profit. When you have identified the target profit which could either be a major support or resistance or the end of a price projection, you will know how much is the profit you can get from the trade. If the profit and stop loss can make up a risk reward ratio of 3: 1 or 2: 1 depending on your personal target. You should then enter a trade.

If you find that the risk reward ratio is too low, you can then abandon the trading opportunity and look for another one. That’s why discipline is very important in trading. I hope that I have answered your question and do feel free to comment if you have any other doubts.

]]> By: wallace http://www.forexindicator.org/my-forex-risk-management-tips.html/comment-page-1#comment-1463 wallace Thu, 09 Sep 2010 12:56:08 +0000 http://www.forexindicator.org/my-forex-risk-management-tips.html#comment-1463 Hi, Kelvin! Thanks for this site and your book - it is great that you share your experience with other peoples :) Here is my question relative to this post. When you are talking about 3:1 risk ratio (60:20 pips in your example for TP and SL), how can trader be sure that he will get this 60 pips of profit from any success trade? Doesn't 40 pips give him a win? It does! But this gives ratio 2:1, which is not we want. Did you get my point and my question? P.S. Sorry for my english :) Hi, Kelvin!
Thanks for this site and your book – it is great that you share your experience with other peoples :)
Here is my question relative to this post.
When you are talking about 3:1 risk ratio (60:20 pips in your example for TP and SL), how can trader be sure that he will get this 60 pips of profit from any success trade? Doesn’t 40 pips give him a win? It does! But this gives ratio 2:1, which is not we want. Did you get my point and my question?
P.S. Sorry for my english :)

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