Some explanations fo...from May Belle

Some explanations for my previous post. Risk-to-Reward Ratio = Ratio of what you stand to lose compared to win Fixed % Risk = A fix % amount of your total account balance at risk per trade Fixed Dollar Risk = A fix Dollar amount at per risk trade. Regardless of account size fluctuations. Win Rate = The % out of all trades that are winners

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To increase the likelihood of a successful trade, it is necessary to enter it with a little delay and exit it without waiting for the change in the profitable movement. #IamAtrader# #BeginnerTrader# #AllforYou#

May Belle

The fixed dollar approach uses relatively simple math for breaking even as shown below. Example: 3 losing trades followed by 1 winning trade using 1:3 risk-to-reward achieves breakeven (ignoring trading fees and slippage) This risk-to-reward ratio itself implies the win-rate needed (lose $100 three times, win $300 once, you break even). The fixed dollar amount risk doesn't deal with compounding. As such, its logic cannot be used for fixed %. #IamAtrader# #BeginnerTrader# #TradeNotes#

May Belle

You should not expect that the loss-making trades will ultimately lead to a reversal and profit. You should not build up a position on it, proving to yourself that you are right. The best solution would be to exit the position and accept your losses, as they are inevitable in stock trading. #BeginnerTrader# #AllforYou# #IamAtrader#

May Belle