Hi there,
I understand how leverage, pip calculations, margin, etc all works although I am still having difficulty grasping how to calculate risk:reward ratio. I know where what my risk is, but does calculating the reward come from using S&R, pivots, etc? How exactly do experienced traders go about doing this - do they just let the trade play out if it's positive and hope for the best? What about retracing and calculating that into the equation? Does this just come from market intuition over time or is there a certain way to do it?
Thanks!
I understand how leverage, pip calculations, margin, etc all works although I am still having difficulty grasping how to calculate risk:reward ratio. I know where what my risk is, but does calculating the reward come from using S&R, pivots, etc? How exactly do experienced traders go about doing this - do they just let the trade play out if it's positive and hope for the best? What about retracing and calculating that into the equation? Does this just come from market intuition over time or is there a certain way to do it?
Thanks!