Why we are taught to set risk/reward ratio larger than 1

[dirk]

I do hope so, remember only serious people will get answer.
I will have a lot of questios for yo either...

[rezo_s]

okay.

[rezo_s]

Did you get the email?

[mishak]

The topic I've started in the Beginner's Forum caused a lot of attention from Advanced guys.
I agree that risk/reward ratio is only a part of complex Money Management process.

To come back to risk/reward topic please follow here
Should we keep risk/reward ratio >1 or not ? part 2 of 6 threads.

© MK 2003

Thanks everybody for your posts
I close this thread.

[pqdzung]

I find it interesting out of all your posts, mostly I am actually a novice.
I think numbers are just numbers (including RR and signals), and that’s you who judge things right.
They help you for things you are unsure of (if you are sure, what stops you?).
The question is which ones and how they can help you?
If no one ever proved (experimentally or statistically) that setting very loose SL will kill you and you JUDGE that you can live no matter what’s the outcome, that’s OK, you maybe the first one to success (really, why not?).
But if not, it’s wiser to follow the majority especially things that just have been proved (scientifically) or for long time proved.

For me, my brain tells me the Risk/reward must be <1 to be profitable but I have not (and don’t know when will) made ANY profits out of that way (any one can give a list of reasons?).
Meatime, I actually have achieved some success setting no SL at all (FXGame).

Again, Can Mongoose give statistics about reasons that traders’ failures are bound to? (should one be BREAKING THE RULES, then which rules are most broken?). I believe in STATISTICS.