I must say I am very surpirsed at the varying amount of opinions expressed on such a simple concept. I guess this is an example of human nature making things more complicated than it has to be.
Why TP > SL? Simply because if you win more than you lose...you make money...PERIOD. This has to be a basic concept of trading or you might as well study plumbing.
In every aspect of your trading plan you MUST strive for more money than you lose. That goes for EVERYTHING including your win/loss ratio too. If you win 51% of the time AND if each winner makes more than each loser...you are making money.
If you can find a method of entry/exit that is greater than 51% accuracy all the better...but in each trade you must strive to make more money than you are losing. No matter how you look at it...averaged, or individually.
HOW you go about doing this depends greatly on your trading method, your risk appetite, and your maturity as a trader...but everything must be geared toward making more than you lose or this is all just academic.
Why TP > SL? Simply because if you win more than you lose...you make money...PERIOD. This has to be a basic concept of trading or you might as well study plumbing.
In every aspect of your trading plan you MUST strive for more money than you lose. That goes for EVERYTHING including your win/loss ratio too. If you win 51% of the time AND if each winner makes more than each loser...you are making money.
If you can find a method of entry/exit that is greater than 51% accuracy all the better...but in each trade you must strive to make more money than you are losing. No matter how you look at it...averaged, or individually.
HOW you go about doing this depends greatly on your trading method, your risk appetite, and your maturity as a trader...but everything must be geared toward making more than you lose or this is all just academic.