Forex Trading Why you DON'T NEED a reward risk ratio of 3 to 1 | Forex
Information | Currency | Markets | Fx | Video | Assets | Lesson | Trading
It seems there's a lot of confusion around this, especially from beginners, who think that the only way to create a consistent, predictable income stream trading Forex is by trading with a reward to risk ratio of 3:1
Comments
-
I agree, I've tested both the 1:3 "recommended" and the 3:1 "inverted" ratios and never made as much money as with the 1:1 ratio. Thank you so much.
-
sir I know you are old but seriously u have to review what u just said
-
too many bullshit ! even on begining of the video he mislead by saying "Typical Wining % of each of RR"
the real issue here is you needed atleast 33% of the wining trades using the 3:1 RR to be in profit ! -
so your trading skills change from 33% to 66% because of the risk ratio?? haha i hope your not managing a hedge fund!!
-
You cold blooded bastard! All professionals know that a 1:3 risk reward ratio is absolutely necessary to become a profitable trader.
-
This old fart lives in la-la-land.. he talks about RR in percentage and yet refers to profit in dollars... compare apples to apple old fart! Sound to me you have never heard of Martingale?
-
if one doesn't take some profits (20 to 30 pips) when one see them, the market will take them back from the trader most of the time and punish one with red figures. You can't trade properly with a tight stop loss of 10 to 15 pips, which effectively destroy the r/r theory. And getting strings of losses is not uncommon if one sticks only to high r/r.
-
If you have been ripped off, scammed or let down in Binary Options before then you need to watch this explosive video. GINO TRADING SYSTEMS
-
Been trading for a long time. The video makes sense. When I read a lot of the comments posted it isn't hard to understand why 95% of traders lose money.
-
With full respect this video should be deleted
-
don't take this video seriously. how in the world he get "typical winning &" from? RRR should obtain from analysing setup; entry, stop & target. Not the other way around
-
simple math !
-
For the first two scenarios you make two trades and then on your 1/1 scenario you make 3 trades and claim it to be 1/2. Lolwtf?
-
Good vid about 1:1 ratio. No wonder why so many people dislike it and keep losing with 3:1 or 2:1(good thing). What they don't understand is with 1:1 your chance of winning is 50%, with 3:1 you reduce it to 33% no matter how good your entries are. It's because of the random side of the price action.
-
So shit
-
God this is painful to watch. Of course there will be some hillbilly conspiracy theorist who dares to question the risk reward ratio system. Where the fuck did you come up with the idea that if I have a R/R 1:3, I will be 33% correct? That's the break even zone you old fart. I might be 50 or 60% correct with 1:3 R/R. Or even more. Now..this is what you should do: 1. Forget everything that this redneck cotton eye joe who has an IQ of a potato said. 2. You don't put your stop and take profit randomly out of blue to meet the 1:2 or 1:3 risk reward ratio. You find a potential high probability set up that already offers this kind of risk reward. That's it. For example, we have an uptrend and we want to sell because we have strong resistance, with divergence and a pinbar on daily chart. You set your stop loss a little higher than pinbar's wick and place take profit around .0382 fibo level which often times price reaches. When you almost reach that level, put your stop very close. If your stop gets hit, you'll probably exit with at least 3 times profit compared to your initial stop. If it doesn't get hit, that's fantastic, stay in a trade till 0.5 fibo level and so on.
-
He's right...profitability relies on appt...
-
Bullshit :) Why to risk 100 bucks to gain 100? Why not risking 20 to make 100? The higher RR the better. Off course the entry must be very well executed
-
I don't see how you can take your "Typical winning %" label seriously
-
i dont understand why everyone focus on breakeven
u dont risk your money to breakeven or your too stupid , and i mean as it sounds, STUPID
better than risk your hard earned money to sweat over breakeven, you go flipping burgers at macdonalds , because there is no breakeven EVER there, you better than breakeven flipping burgers.