Find saving grace before you suffer from loss




Once you are in a certain position, the market will determine you are right or wrong. The only way to judge whether you are in the right position in the market is to prove it with profit and loss. The success or failure of trading is determined by the outcome, and trading logic as well. The criteria of trading comes from your perception of the market pattern and trading logic, which is the most direct manifestation of the pattern view.

Traders with a winning rate more than 50% use the risk-reward ratio. A 1:2 risk-reward ratio means that the distance between the buy point and the limit point is twice the distance between the buy point and the stop loss point. This is an evaluation and measurement that must be carried out before the transaction. Many traders think that the higher the risk-reward ratio is, the better, but it is not. In real trading, the risk-reward ratio is set by combining the trader's trading style and strategy.

Short-term traders should set the risk-reward ratio at 1:1 or even lower; mid-term traders should set it at the middle level, generally 1:2, 1:3; while long-term traders have longer positions with low trading frequency. You can set a higher level, which generally exceeds the 1:5 level.

Therefore, traders must set the risk they can bear before entering the market. Once a trader loses 50% in profit, he must reach a 100% profit in the next trade to recover the loss. If the loss reaches 80% or 90%, he must earn 400% or 900% accordingly, which is a devastating blow to the traders assets.
WikiFX is a global Forex inquiry platform and provides real-updated rankings of
Forex brokers. So if you are seeking for a broker to start your Forex trading journey, please search the detailed information about the broker on the WikiFX.
Latest News
-
Copper Registers New Highs in Row| Influencer‘s Insight •Jasper Lo
WikiFX | News 2021/3/1 7:26:31
-
Top 5 cryptocurrencies to watch this week: BTC, BNB, DOT, XEM, MIOTA
WikiFX | News 2021/3/1 1:38:00
-
Daily Forex Analysis - 02 March 2021
WikiFX | News 2021/3/2 3:59:18
-
Daily Forex Analysis - 01 March 2021
WikiFX | News 2021/3/1 5:43:56
-
FX Choice Canceled Investor’s Account with Over €250K Profits
WikiFX | Exposure 2021/3/2 12:39:40
-
Bitcoin Tumbles to $43K, Lowest in Three Weeks
WikiFX | News 2021/3/1 8:53:08
-
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Ripple nears 30% spike while crypto bull run takes
WikiFX | News 2021/3/3 1:57:56
-
Unable to Withdraw Funds from AF Index
WikiFX | Exposure 2021/3/1 10:25:12
-
Throw away Worries on Trading for a Living
WikiFX | News 2021/3/1 7:36:16
-
Silver Price Analysis: Keeps bounce off three-month-old support line above $26.00
WikiFX | News 2021/3/1 1:45:24
South African Rand
- United Arab Emirates Dirham
- Australia Dollar
- Canadian Dollar
- Swiss Franc
- Chinese Yuan
- Danish Krone
- Euro
- British Pound
- Hong Kong Dollar
- Hungarian Forint
- Japanese Yen
- South Korean Won
- Mexican Peso
- Malaysian Ringgit
- Norwegian Krone
- New Zealand Dollar
- Polish Zloty
- Russian Ruble
- Saudi Arabian Riyal
- Swedish Krona
- Singapore Dollar
- Thai Baht
- Turkish Lira
- United States Dollar
- South African Rand

United States Dollar
- United Arab Emirates Dirham
- Australia Dollar
- Canadian Dollar
- Swiss Franc
- Chinese Yuan
- Danish Krone
- Euro
- British Pound
- Hong Kong Dollar
- Hungarian Forint
- Japanese Yen
- South Korean Won
- Mexican Peso
- Malaysian Ringgit
- Norwegian Krone
- New Zealand Dollar
- Polish Zloty
- Russian Ruble
- Saudi Arabian Riyal
- Swedish Krona
- Singapore Dollar
- Thai Baht
- Turkish Lira
- United States Dollar
- South African Rand
- Amount
- South African Rand
- Available
- -- United States Dollar