So you want to earn your money day trading the markets? You’re not the first person, and you certainly won’t be the last. It’s a lucrative business that contains a lot of risk, but a hefty reward for those who can get it right. The reason why am writing this is that I see many new traders simply open up a chart, place and indicator on it, and suddenly think they going to … [Read more...]
How The Correct Risk Reward Ratio Can Boost Your Profits
Ever wonder why a 1:3 Risk:Reward ratio is so prevalent as a rule of thumb? Ever since I’ve been reading about day trading, I’ve heard people say they ideally look for at least a 1:3 ratio, even they’ll settle for 1:2. In this article I’ll talk about how you can derive this value from the expectancy equation. Further, I’ll show how you can predict what kind of Risk:Reward ratio … [Read more...]