Discussion and Q & A Session

The risk/reward ratio helps investors manage their risk
of losing money on trades. ... The risk/reward ratio
measures the difference between a trade entry point to
a stop-loss and a sell or take-profit order. The risk-
reward ratio is simply a calculation of how much you are
willing to risk in a trade, versus how much you plan to
aim for as a profit target. The greater the possible
rewards, the more failed trades your account can
withstand at a time. Think of it this way, if you were to
use the example above and have a successful trade, it
would buffer you against four losing trades with the
same ratio. It is also important to use your plan. Many
people make the mistake of spending all their time
creating a plan, then never implementing it.Create your
own trading plan with Xtream Forex!

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Webinar Time: 8:15PM GMT+5