Account x Risk= Reward

So last week I found myself in about 6 trades at one time. The trade we have been focusing on often goes off at the same time on multiple currencies. I know you may be wondering "What kind of risk am I taking on my account?" Well, I can safely say that I was under 3% risk at all times, and this is how: I was in a few trades that where in profits by the time I got another signal to re-enter more trades. I was able to move Break Even on a number of entries which freed me up to be able to get in a few more trades. I lost on the GBPUSD, which does not surprise me cause I tend to always lose money on that pair. I only risked 1.5% on that trade. The profits I made on the other trades that paid out more then made up for that lost trade. I ended that day with a little over 10% gain on my account. Another account I trade I have almost doubled this month. That account is a high risk account that I trade about 10% risk per trade on. I always watch my risk. I think my risk is more important to understand then the trade you will trade. Not only my risk on my account, but also the risk ratio of the trade itself. I personally like 1:1 or better ratio. It makes no sense to me to risk 50+ pips on a stop and only go for 20 pips. If the trade where to fail you are now 3 trade away from break even and profit. Not to mention you are now trading with less money then what you started with, which also means your entries will be less in a monetary value. I could go on and on about risk ratio's but most people already understand it. If you don't, a few more lost trades will teach you very quickly. LOL (we all gotta learn some time) "Think of a lost trade as a mini seminar. You better have learned something from it and taken notes otherwise it was a waste of money" Pip T

@Twitter

Loading...