The First Principles for Profitable Trading

Another load of drivel that is nothing but clickbait aimed to sell ads and pimp worthless "education".

The author puts this:
"1.Creating good risk/reward ratios at entry. Your potential reward should be two or three times greater than your risk of loss. "

And then this:
"10.Setting high probability profit targets to see if the maximum potential reward is worth the risk. "

The problem is success rate and R/R are mutually and inversely dependent - the higher the former the lower the latter. So this is how it works - to get good success rate the trader needs to lower TP. Then the trader calculates SL by some cooked up and canned R/R rule (2:1 or 3:1 or 1.6:1 or 1:1?). Then that SL ends up at a place where it technically shouldn't be. If the trader places the trade, then the stop gets taken out before reaching the target (and then it's the market maker's fault! they are all scammers!).

Or, if the trader is smart enough to realize that, then they do not take the trade, which means they just let a perfectly fine trade set up slip away. The probability to get a set up that has both very high chance of success and very high profitability is tiny, is like looking for a needle in a haystack. Good luck with that. That trader will stare at screens for weeks and months and nothing to show for it.

Any newbie following this garbage will get broke even faster than before they read it.

First line "Your potential reward should be two or three times greater than your risk of loss. "

This depends on your accuracy as a trader if you can nail the entries because you have watched charts for 12 or 13 years, then even a 1:1 hit rate is more than good enough provided you win more trades than you lose, this is for traders hitting 80 or 90% winning trades. Many times I have seen markets go nowhere all week, if you are holding out for a 200 point move because you have a 100 point stop you may never see your target hit before your stop is taken. Risk to reward cannot be judged without the context of the instrument and time frame you are trading, as a blanket statement its pure fantasy.

I love reading them, cause its easy to make the obvious joke that if they were actually decent they would be in the market not making that random article

But more than that, you realize that the target demographic for alot of this stuff and specifically the even newer stuff has a target demographic of people that dont really care to learn it anyways. Especially with shit in like movies where they clearly dont even know what the fuck they're talking about

Really weird that our culture creates people that love indulging in the idea of being a stock broker, but never actually talks about excel sheets and the actual global market ect.

Its abit like lottery tickets bought thus promoted the most in low income areas

In my humble opinion, a good money management method is vital to long term success and, for me, a good stop loss trail rather than a fixed TP gives you greater reward over the long term! All this article does is show that more money is made teaching newbies how to trade than just trading. I have never met a long term profitable trader that doesn't teach!

As a new forex trader I set a buy and sale at my entry and allow the market to dictate the direction after looking at the daily. Once I see the previous price action that has positioned the daily candle stick, see if any news on the pair exist wait for the trend then exercise a new trade once momentum occurs. If the market continues to trend either up or down the negative position (either buy or sale will begin to come out of the red to profit). Trying to make a 3:1 or 2:1 can happen but should not be the premises for profit. Profit is profit. I believe growing the capital is more important than ratio ratios can stop u out or continue to put your account in the negative.