One principle I always follow in trading is maintaining a 1:4 Risk-to-Reward ratio.
This means accepting a relatively small risk while targeting a larger potential reward. With this approach, a single well-executed trade can offset several trades that don’t perform as expected.
In real market conditions, stop-losses are completely normal. The key is not trying to win every trade, but managing risk and waiting for clear market structures, such as:
Victor B - Trading
📊 RISK MANAGEMENT IN TRADING
One principle I always follow in trading is maintaining a 1:4 Risk-to-Reward ratio.
This means accepting a relatively small risk while targeting a larger potential reward. With this approach, a single well-executed trade can offset several trades that don’t perform as expected.
In real market conditions, stop-losses are completely normal. The key is not trying to win every trade, but managing risk and waiting for clear market structures, such as:
• Liquidity sweeps
• BOS / CHOCH
• FVG mitigation
• Supply & Demand reactions
For me, patience and discipline are far more important than trying to trade every market movement.
💬 Question for everyone:
What Risk-to-Reward ratio do you usually use in trading?
1️⃣ 1:1
2️⃣ 1:2
3️⃣ 1:3
4️⃣ 1:4 or higher
3 months ago | [YT] | 11
View 1 reply