The best risk to reward ratio in forex
I have been trading for five years. And have almost always lost. To say I have had no Luck is no lie. But that’s what makes me special. I never gave up. And through all the losses and pain I have become a better person and trader through the difficulty and by perseverance. I studied brilliant money management and Strategies which all work very well. My goal was to attain a good risk to reward ratio in forex. I went on the worlds best courses and paid big money. There is a proverb: It says: “ why is there in the hand of a fool the purchase price of Wisdom when he has no heart for it.” I was the problem. Not the market. I was un-disciplined. I over leveraged. I got lazy and did not analyze sufficiently. And the main reason for that was that I got caught up inside the Old day trading scalping trap of trying to get involved in market movements that were not mature, ripe and well they just weren’t ready. I have learnt that to be successful in trading this market you need be patient. Forex risk reward ratio is another key to success. Waiting for a setup means the market will come to your entry and then you take the risk. Never more than your rule allows percentage Wise. And then moving stops to beak even at the right time after a good move or behind the trend lines. The Best place to take profit are at Support and resistance levels of the Daily and our hour. Frustration only happens because you put your hope into the market. Your hope and trust in Life should never be in money or any thing. Once you put your heart into money and things you will be a Flatterer Happy up Sad down and your love life will be terrible because all you cared about was money. If your hope is in money and you lose it you will be heart sick then you will always be sad especially if you do become rich and then imagine losing it all and your heart is in the money. It will be like you lost your heart. As for me I like to go for trades that offer 200 – 1500 pips with 25 – 60 pips stop loss/
So to trade these are the golden rules:
1. Work Hard analyzing the long term time frames that control the entire market
2. Wait for the market to reach your Key areas
3. Enter with Tight Stops between 25 – 40 Pips
4. Move stops to break even intelligently, after day 1
5. Let your profits Run – Remember you in for free once break even is done
6. Take the reverse trade when profits have been reached 150 – 1500 Pips
7. Analyze every chart. And Find – Mark and Take best opportunities/
Staying calms means you know where you are going and you expect the worst and trust your analysis. The worst can be a great opportunity to re-enter at a better price. Never Fear. The Next opportunity is always a solution to your previous trade. The Euro Chart Below, gives a great example of how I like to trade. Mark the key u-turn areas and show profit in pips. This is critical for your psychology and will keep you patient and at peace.
Always enter trade in the early London session and move stops to break even after a day or so and let my profits run. Always Display the Pips reward on the chart. That reminds me to be patient.
In the above on the 24th September 2015 GBP/AUD gives 950 pips move to The South. The market moved all the way down 1000 pips. It reached target and is now ready to technically go up 500 Pips.