Basic Money Management Strategies|Reward-to-Risk Ratio In Forex Trading
Basic Money Management Strategies|Reward-to-Risk Ratio In Forex Trading
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The issue is how much money is the trader willing to risk? A 1:2 Risk/Reward ratio maximizes profits on winning trades, while limiting losses when a trade moves against. By risking 50 pips to make a reward of 100 pips is effectively inverting these statistics favorably
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Forex money management is the single most important factor that determines your long-term success in the forex market. ... Having a solid trading strategy is just one side of the coin, while the ability to effectively manage your risk of open trades is what will make you a profitable trader
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