What is the correct risk/reward ratio?

MoneyTec Forums Brokers What is the correct risk/reward ratio?

This topic contains 6 replies, has 6 voices, and was last updated by  OctaFX_Farid 1 year, 5 months ago.

Viewing 7 posts - 1 through 7 (of 7 total)
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  • #1364

    Coleen
    Member
    • 26

    It is a very much obvious thing that the BEST way to succeed is by having proper balance when it comes to getting risk/reward ratio right.

    That is the ONLY way forward for us to gain well. So, I like to hear what people here feel about the correct risk/reward ratio. I personally feel it should be somewhere between ½ risk/reward ratio. But always nice to hear others point of view.

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    #1443

    Peter Parker
    Participant
    • 29

    It is just how we feel comfortable with. Although, it is always about having higher rewards than risk, but still everyone needs to have it according to their comfort and their strategy.

    I don’t think you can take it in any other way at all. It will just not work and will make thing complicated for us, so we need to have plans that suit our way of trading instead of others.

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    #1503

    Coleen
    Member
    • 26

    Peter, don’t get me wrong but if you leave it to your comfort then it will quickly become into greed. So, there are certain rules that just can’t be changed. And, I dare say its rules of right money management that’s the money important one. I always like to keep it with very tight approach instead of trying to be on the expensive side.

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    #1548

    FXGuru
    Participant
    • 92

    The right risk/reward ratio is entirely dependent on us, as what we feel secure with. There are some people who like extra caution with their approach and then, there are some who are more aggressive type.

    I am more of balance kind of person, I don’t prefer to take unnecessary risk yet I don’t go too slow either. So, I believe the right balance is what gets me going.

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    #1663

    Dr.Infinite
    Participant
    • 23

    There is NO correct/incorrect risk/reward ratio; it is just down to what we can handle and what we consider worthy to work with. I always like to go with 50/50 approach with an aggressive style. But if I am doing long-term trading, then I will always stay at 25/75% for risk/reward ratio. But all of these are to be decided by our self.

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    #1716

    ImBustedNoob
    Participant
    • 26

    To me, it is correct as long as you get benefit and profits. If there is no manual book here, so what works for you is just what is enough thing, at least for me.

    I just like to stay very much in the sensible way when working, as I know how much it will impact me if I try to follow others, as it’s not worthy enough.

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    #1744

    OctaFX_Farid
    Participant
    • 28

    I don’t exactly know the correct risk/reward ratio, as everyone has the different one, so no one can really say about the perfect ratio. I think having 40/60% looks a good deal, but then it is absolutely down to individuals and their comfort zone. I feel good at something like 40/60%, it looks legit thing and can be highly beneficial as well.

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