When i started trading i learnt about R/R from many books. At first it makes such perfect sense. And then you try trading for real and you soon learn that it's only a small part of the whole.
No one will ever find a profitable forex system that has a target of 30 pips and a stop loss of 10 pips. Sure you only need to win 1 out of 3 trades to breakeven but there is noise which is random which is very likely to hit your stop and after spreads and commisions your account balance will go down.
If anyone can prove me wrong i would love to here from you.
I believe it's easier to make money with a 30 pip stop and a 10 pip target with the way forex prices usually move. Even when prices break S/R lines and the books say it will move now, it retraces. Often the second break is the one that continues - explain that to me.
IMHO the first thing to decide on is your trading time frame and then build a system to match. Only with trades lasting 2 weeks or more are R:R > 2
appropriate.
No one will ever find a profitable forex system that has a target of 30 pips and a stop loss of 10 pips. Sure you only need to win 1 out of 3 trades to breakeven but there is noise which is random which is very likely to hit your stop and after spreads and commisions your account balance will go down.
If anyone can prove me wrong i would love to here from you.
I believe it's easier to make money with a 30 pip stop and a 10 pip target with the way forex prices usually move. Even when prices break S/R lines and the books say it will move now, it retraces. Often the second break is the one that continues - explain that to me.
IMHO the first thing to decide on is your trading time frame and then build a system to match. Only with trades lasting 2 weeks or more are R:R > 2
appropriate.
Don't kill your dreams - execute them.