Trading with Poor Risk-to-Reward Ratio

[Hannn]

"The act of trading releases adrenaline and focuses attention, generating addictive sensations that aren’t impacted by profits or losses. This bad chemistry induces the new trader to take positions with poor profit potential and excessive risk, just for the thrill of ‘being in the market’. Rigid discipline and unbiased reward-to-risk analysis is needed before taking a trade to overcome this common flaw. In most cases, stick to opportunities that generate profits of at least three times expected losses if trades turn against you."

It is difficult to be patient when my positions are stopped from profit many times.

 

[amaldev]

Let's get it done nevertheless. doing more case studies will increase our confidence

 

[Fin_Trader]

You need to trade only according to your trading strategy and the stop loss level should be less than the take profit level. For me it's a 1:2 or 1:3 ratio. Thus, during the trading period I generally have a profit.