To increase your chances of profitability, you want to trade when you have the potential to make 3 times more than you are risking. If you give yourself a 3: Just remember that whenever you trade with a good risk to reward ratio, your chances of being profitable are much greater even if you have a lower win percentage.

Understanding Leverage in Forex Trading | OANDA

On the very surface, the concept of putting a high reward-to-risk ratio sounds good, but think about how it applies in actual trade scenarios. Right off the bat, the odds are against you because you have to pay the spread. Now, if you increased the pips you wanted to risk to 50, you would need to gain pips.

By doing this, you are able to bring your reward-to-risk ratio somewhere nearer to your desired 3: Not so bad anymore, right? A position trade could have a reward-to-risk ratio as high as The worst part of success is to try to find someone who is happy for you.

How To Minimize Losing Trades?

We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.

BabyPips The beginner's guide to FX trading News Trading. How to Trade Forex Trading Quizzes Forex Glossary.

School of Pipsology Undergraduate - Senior Risk Management. Partner Center Find a Broker. The Number 1 Cause of Death of Forex Traders. Scaling In and Out. Privacy Policy Risk Disclosure Terms of Use.