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    Thread: Using stop loss with risk ratio

    1. #71
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      mithunff is on a distinguished road mithunff's Avatar
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      Stop loss is the best mechanism to fix the risk and trade safely. I personally recommend taking 1% risk in every trade. Because it gives opportunity for taking 100 trades which develop our trading skill. We should set stop loss on the basis swing point and trade volume fix on basis of stop loss pip’s. Example:
      Risk = 100$ X 1% = $1
      Stop loss = 100 pips
      i.e. Volume = 0.01
      No. of trade (we can) = 100

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      A risk to reward ratio that works for you is probably the best for you under your current level of forex trading skills and experience. Other traders with more or less forex trading skills may discover that something different works for them. If it works for you in the forex market, then apply it.
      THE POSSIBILITIES IN FOREX TRADING ARE INFINITE, YOU CAN ACCOMPLISH ANYTHING !

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