Money Management – The Importance of Risk-to-Reward Ratio
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About the Event
Ask any professional trader the secret to success & they would most likely mention Risk Management. It is the single factor responsible for success or failure.
But most traders tend to give priority to the Win/Loss ratio. While having a larger number of winning trades is beneficial to the account, this is not as important since losing trades are a part of the trading process & something that a trader cannot control.
The Risk-to-Reward ratio is more important since this ensures the account growth and more importantly determines what kind of market you should trade & what time frames to trade on.
Most traders are not aware of this important fact & understanding the proper use of the RR ratio will help the trader along the path of success.