Get started

Reward

Do you have a Reward to Risk ratioIn the world of trading, do you know what a Rw/Rs (Reward to Risk) ratio is? if you dont this article will be beyond your understanding. I suggest you read up on Reward to Risk ratio & come back to read this. If you do know what a Rw/Rs ratio & assume most of you do, we can continue our merry trade discussion ;D My Rw/Rs ratio for Swing trades that i take on a Weekly (W) chart is factor of 4 to 6, am happy to see more. with my Day trading strategy; am a little more aggressive & will settle for a Rw/Rs factor of 3-4 to take on a day trade. Once a while, a trade opportunity arises that offer such a large room for Reward to run, as in this (W) chart of WMT WalMart Corp. if the trades goes my way, look at this room for profit to run, with no resistance of supplyzone in sight this can go up.....sweet mama, she got my attention. First; (Disclaimer) I will never take a trade solely based on a sweet Rw/Rs the odds are not in my favour. Back to the trade. So i have a sweet Rw/Rs ratio what else is going on? Price is crashing into a DZ from the (M) & this DZ happens to be the HL of the month (M) uptrend. This is good, The week (W) price chart is into the long-term chart DZ (Demand zone). This qualifies only if the (M) is still in a technically defined in uptrend. This is a Classic trade set-up I love. Like a Snipper I set my LNG (long) entry at 117 level slightly above the lower band of the DZ, my entry was so low that my risk was less than a dollar before my STP triggers. I took the Long position, the market rallied & so did WMT, & I closed 1/2 my position once price reached 128, I took a good 10 Rw (Reward) pressure if off. already the trade made its money. & I let the 1/2 of the position run. Lets see how it goes when the market is open on Monday. This was a swing trade using the (W) chart to identify the setup. Long-term would be the (M) chart & I used the (D) daily chart to enter & set my STP.
NYSE:WMTLong
by greatful-me
GBPUSD +9R Trade - Supply Demand, Liquidity, ExplanationVery nice Trade that I took today. This is actually the way on how to approach your trades by looking at the options that the market is giving you. In this case I was not sure which Demand Zone the market will pick so I decided to use all 3 Demand Zones. The first was activated and ran into profits. Then I secured the position by moving SL to entry which was a very important decision. We do not want to risk our position if we know exactly that the price can use the liquidity below us. And this is what the market did at the end. What do you think about this approach?
by DariusFxTrading
FB, swing set up FB, As we can see it’s holding a nice Moving average and trend line as well. We can see a great risk and reward set up for a swing trade. Falls In our research on swing set ups with a good ratio of Risk and Reward. As always we put quality over quantity, don’t forget to follow us for SWING trades research on risk and Reward Ratio. Subscribe and don’t miss out next research. Swing trading is great because you can create a lot wealth in % by risking less $$. Compound Gains. Thank you for the Love, I really appreciate those likes, makes a difference.
NASDAQ:METALong
by JhonMontana
XRP, wealth creation swing trade XRP, is getting support on 50 MA. As you might see the red circles same about to repeat we might see a great move ahead. This can be a great Swing trade with a good Risk and Reward Potential. Don’t miss out our next research on swing trades with a good money management. As always we put quality over quantity, don’t forget to follow us for SWING trades research on risk and Reward Ratio. Swing trading is great because you can create a lot wealth in % by risking less $$. Compound Gains. Thank you for the Love, I really appreciate those likes, makes a difference.
BITFINEX:XRPUSDLong
by JhonMontana
HOPEFULLY BULLS WILL STRIKE IN AND HIT MY TARGET.The first question i always ask myself is "who is in control of price?" that way i can analyze my trrading from a price action point of view. So, who is in control of price on this one? First we have a bearish trend followed by a tiny pull back and then an indecision candle which tells us that the bearish power might transitioning to the bulls. Of course i might be wrong, but that is why i keep my Risk/Reward a 2:1 minimum, that way i only have to be right 40% of the time in order to be profitable. "Trading is not about being right most of the time, its about being profitable" - Anonymous Trading Details: Time Frame: 8hr Entry: Above the high of the indecision candle Stop loss: A few pips below the Indecision Candle Risk/Reward: 2:1 Account Risk: 2%
Long
by daldertg
Is this a breakdown or a meltup?The choice is yours - you can see it any way you like. The technical features here are: 1. Reducing peaks of squeeze momentum. 2. Recent RSI is below 50. 3. Rejection of 4H ATR line. 4. Large area of consolidation. Caution: none of the above means that price has to crash. Just to be clear - price could well go to the moon. The technical situation in my assessment (at this time) means greater probability for the south. Probability estimates do not predict how far a movement may go. This is a set up for a trend-following scenario i.e. high risk to high gain. High risk means high probability of big losses, if you don't know what you're doing if you short this. Following a trend south means finding a suitable trend that is below the 4H time frame. There is no magic formula to work that out. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which has a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
A
by Captain_Walker
SHIB/USDT Perfect Triangle!Hello Community! When looking at SHIB/USDT on the 4hr TF we can see it trading in a very tight triangle. With the market ultimately moving with BTC this can go in either direction. A breakout in either direction, beyond the trendlines shown, should let you know if you should be entering a long or short position. Keep an eye out for a breakout and a retest before making any final decisions. If entering a trade don't forget to use a stop-loss. Don't trade with what you're not willing to lose. Love it or hate it, hit that thumbs up and comment. It'll be greatly appreciated! This is not financial advice. Safe Trading. Calculate Your Risk/Reward & Collect! Simplicity Wins (
by rnaofs
AMC Decision Time!Hello Community! AMC has had a very strong run all last week. It is currently trading in a bull flag pattern and is at a crucial point at the bottom of the triangle. If it fails this support we can expect the price to drop down to the yellow S/R line shown or the 55EMA. Covid-19 is slowly becoming less of a major topic and movie theaters are beginning to pick up in sales, so I wouldn't be surprised if this continues to grow. I'm not 100% sure though but if it bounces successfully we can expect a battle at the top of the triangle before breaking through to retest the previous high. Let's see. If entering a trade don't forget to use a stop loss. Don't trade with what you're not willing to lose. Love it or hate it, hit that thumbs up and comment. It'll be greatly appreciated! This is not financial advice. Safe Trading Calculate Your Risk/Reward & Collect! Simplicity Wins
NYSE:AMC
by rnaofs
15
Risk managementI saw a lot of traders they bet for a bull run, without checking his/her risk/reward ratio. Many unexperienced traders are beting for new ATH at a stock, which shows sometimes a really small risk/reward ratio like 3:1. So they risking 3 times of your investment as they could probably win. That´s why I wanted to write this small explanation about risk/reward ratio. What is it ? Well, you take each trade the risk to loss money, that´s why it is mandatory to handle each trade with a good risk/reward distribution. Your distribution should be minimum a 1:2 ratio. Successful day traders are generally aware of both the potential risk and potential reward before entering a trade. The goal of a day trader is to place trades where the potential reward outweighs the potential risk. These trades would be considered to have a good risk/reward ratio. A risk/reward ratio is simply the amount of money you plan to risk compared to the amount of money you plan believe you can gain. For example, if you think a potential trade may result in either a $400 profit or $100 loss, the trade would have a risk/reward ratio of 1:4, making it a favorable setup. Contrarily, if you risk $100 to make $100, the trade has a risk/reward ratio of 1:1, giving you the same type of unfavorable odds that you can find in a casino. With regards to the long-term profitability formula above, finding trades with high risk/reward ratios (1:2 or higher), will help you maintain higher average profits and lower average losses, making your trading strategy more sustainable. Another important topic is "Cutting losses", related to our risk/reward ratio A stop-loss is a pre-planned exit order for a losing trade. These can be executed manually or automatically on your broker platform. The purpose is to cut losses before they grow too large. Stopping out of a losing trade can be one of the hardest things for day traders to do consistently. However, failing to take stops can result in margin calls, unnecessarily large losses, and ultimately account blowouts.
by TradeandGrow