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mathematics
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Force a Minimum 1:2 Risk-to-Reward Ratio (RRR).
If you risk $50 to make $50 (1:1), you need to be right more than 50% of the time just to break even after broker fees.
The Math: With a 1:2 or 1:3 RRR, you can lose 60% of your trades and still walk away highly profitable. Stop taking setups where the potential reward doesn't vastly outweigh the risk.
#tradingtips #mathematics
If you risk $50 to make $50 (1:1), you need to be right more than 50% of the time just to break even after broker fees.
The Math: With a 1:2 or 1:3 RRR, you can lose 60% of your trades and still walk away highly profitable. Stop taking setups where the potential reward doesn't vastly outweigh the risk.
#tradingtips #mathematics
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