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And this is a big one, like Jennifer Lopez’s behind… setting large reward-to-risk ratio comes at a price. On the very surface, the concept of putting a high reward-to-risk ratio sounds good, but think about how it applies in actual trade scenarios. Let’s say you are a scalper and you only wish to risk 3 pips.
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Essentially, this is how risk management works. If you learn how to control your losses, you will have a chance at being profitable. In the end, forex trading is a numbers game , meaning you have to tilt every little factor in your favor as much as you can.
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2008/01/19 · Hi All In my estimation, 80% of the threads on systems seem to discuss finding the best entry rather than discussing money management. To me this seems a little misdirected because even sub-optimal entries can be very profitable with the right money management.
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