Even with 50% wrong trades, you can still be profitable and make money in markets. Read below how to do it.
- There are two key aspects to this
- Your risk to reward
- And how to place SL
Let's start with R:R ratio ( Risk to Reward Ratio ).
- There are two key aspects to this
- Your risk to reward
- And how to place SL
Let's start with R:R ratio ( Risk to Reward Ratio ).
For eg
- You are buying a position at Rs 100, your SL should be at 95 & targets at 110. This ensures that your risk to reward is 1:2.
- If you are making 5 profitable trades, you make profits of Rs 50, with 5 wrong trades, you loose Rs 25.
- Overall in Rs 25 profits.
- You are buying a position at Rs 100, your SL should be at 95 & targets at 110. This ensures that your risk to reward is 1:2.
- If you are making 5 profitable trades, you make profits of Rs 50, with 5 wrong trades, you loose Rs 25.
- Overall in Rs 25 profits.
- In below chart, it clearly shows how with increase in your risk to reward ratio, you need lesser number of successful trades to make profits in trading.
- Focus on working on your trading discipline and setup, profits will follow.
- Focus on working on your trading discipline and setup, profits will follow.
- Second aspect is how to place SL
- Find support levels with ema crossovers with classicals resistances and support, available in many trading & stocks related apps.
- This is the easiest and readymade way to find your levels, let us know if another thread is needed for SL.
- Find support levels with ema crossovers with classicals resistances and support, available in many trading & stocks related apps.
- This is the easiest and readymade way to find your levels, let us know if another thread is needed for SL.
- Place SL & Targets based on this simple technique.
- With time, increase your position sizing and learn to average when on upside.
- Disciplined approach in markets make majority of traders profitable.
RT if you find this thread simple yet important for profit making.
- With time, increase your position sizing and learn to average when on upside.
- Disciplined approach in markets make majority of traders profitable.
RT if you find this thread simple yet important for profit making.
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