I think we should risk less to avoid burning accounts.... With less risk and stop loss we could filter poor trades.... That the market is ever changing. Those indiors doesn't predict future price moves. For instance you start 10 transactions even in the event that you lose 6 days in a row using tight stop loss you'll still have the ability to trade rather than possess a stop out and if you are lucky you'll end up having like 4 profit transactions running subsequently use trailing stop to protect trades.... Then just be happy to have small profits.... A cent constitutes a dollar...
There are some very wrong answers and attitudes , then again the initial question is limited in clarity too....
The issue does not define which risk is being called to...
when the question means stake risk (lot dimensions ) then we all know that is linear stake $10 @ 3:1 = 30 or $20 @ 3:1 = 60$ risk is exactly the exact same
when the risk referred is account risk ie: % of account staked per trade, then NO it does not mean more profits it signifies more account movement (not necessarily profitable movement) - account management is a long game not a quick wager, it's all about capital preservation through potentially long draw setbacks through repeated losses - you have to think like an investor not a gambler, not a trader to be successful in account management. More account risked will reap more potential profits (see stake risk above) but also much and the destiny of the account will be a swift nosedive
then there is the commerce risk itself that I doubt that the thread starter was referring to, competitive entries reduce the odds and offer a bigger draw down, the successful trader will be looking for the ideal balance, and the risk can be altered depending on the place you entrance is placed. Gator refers to awaiting the cheap seats that which he is doing is decreasing the entrance risk and this will often boost the profitability of one trade by raising the commerce odds.
Its depend of each trader. If you are a gambler forex is a risk game. If you are a professional speculator forex is comparable to some other bussiness.
Forex is simple but not straightforward.
Where is diference? .
In each trader.
90-95percent retail traders decrease his capital. Why? .
There is no only one reason for this but there's only one answer. Cause 90-95% retail traders are gamblers.
There is a hindsight error to understand that forex is the most simple that you could accept. This is beginning of end for this 95%.
It is funny how a lot of traders talk about taking more risk, once the singular most important thing in this business is handling risk. The very first step to getting profitable is handling risk. . Next understand your system by being aware of what works and what doesn't and when you understand what functions stick to it. Hopefully you keeping a very low risk profile can get you through the good and bad times profitably. And as for risk/reward ratio, the 1:3 risk/reward doesn't always work so keep calm, study hard, manage risk and emotion, and generate income.
Remember Forex is all about SURVIVING. What is the purpose of earning money to spend then dying the next second?
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