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Risk Reward Ratio

Ano ang understanding mo sa risk reward ratio or R/R?

How much risk you are taking at how much reward ang posibleng makuha mo.

1:3 R/R is an ideal risk reward ratio according sa karamihan ng traders.

What does 1:3 R/R mean?

 Three units of expected return for every one unit of additional risk.

Now, I will say something na you would probably disagree at first but it will make a ton of sense later.

Risk Reward ratio does not make a ton of sense if you truly understand trading.

You can control your risk and you can identify it ahead of the trade but the reward part is out of your hand.

Yung example na ito ay naviview sa hindsight.

Let me show you what I mean.

Heto lang ang nakikita mo real time na trading.

Hindi mo alam kung aakyat ba or not ang price.

You can control your risk kasi pwede kang magkaroon ng stoploss or cutloss point.

Yung reward ay hindi mo macontrol.

You can set a TP or target price but ikaw lang nagseset nun at wala naman pake si market sa TP.

Paano ngayon kung may 1:3 ka na risk reward ratio tapos hindi naman tumuloy sa pag akyat ang price.

That would render your process of making a risk reward ratio useless.

Isang reason bakit hindi kumikita ang karamihan ng traders ay yung concept nila towards potential reward or potential gain.

I have dedicated an ample amount of time discussing this idea sa Trade Management Bootcamp.

Kung nais mong maopen ang eyes mo about the things na hindi mo narerealize or hindi mo alam about trading ay I highly suggest na sumali ka sa Trade Management Bootcamp.

Sobrang daming topics doon that will blow your mind.

Avail it here: https://form.jotform.com/232946879623472

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