Can't understand Risk/reward Problem!

This is a discussion on Can't understand Risk/reward Problem! within the First Steps forums, part of the Reception category; Hi! I don't know what is wrong with me but I can't understand how the process below works (on the ...

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Old Oct 30, 2017, 11:15pm   #2
 
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He doesn't buy, he sells! Is that simple enough for you?
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Old Oct 30, 2017, 11:39pm   #3
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It is a hedging trade driven by a CAD economic release. The premise of the trade is that the economic release will move the CAD but the direction is unknown because it will be data dependent. Therefore two pairs are selected with the idea that the data will produce one winning trade and one loosing trade. With a RR of 3:1, the idea is the net result will result in a net win situation in terms of pips as in the example given by the trader. Also the strategy is to enter the trade before the event. It is a convoluted way to trade a market event.

A simpler way is just to take a straddle trade and let the event stop you into a position.
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Old Oct 30, 2017, 11:52pm   #4
 
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Yes, on the left he has sold (short)with a target of 60. Price went down and it was a winning trade. On the right he bought (long), price went down and he lost 22.
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Old Oct 31, 2017, 6:41am   #5
 
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It is just a hedging. you can not maintain it because of spread. spread makes the difference here
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Old Oct 31, 2017, 12:50pm   #6
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please keep trying to buy on such signals .......makes me more and More money whilst i pile on the shorts

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Old Oct 31, 2017, 2:09pm   #7
 
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Quote:
Originally Posted by EnlightenedJoe View Post
When I make money, it normally comes from the shop. This is not ideal because the shop will eventually get pi**ed off. I run the risk of being kicked out by the shop or they will find ways to refuse my withdraw request.

If I can make money from anyone but the shop, that will be great. Can you offer some clues as how I go about making money from people like the OP instead ? It would be perfect if I could take money directly out of the OP's wallet for instance. I won't mind paying the shop a commission in the process since they have a cost in running their business. I don't want to see the shop going bankrupt, that would be same as if I get kicked out of the shop. To be shopless would be a disaster.
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Trade that are not closed will be closed when in profit.
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Old Oct 31, 2017, 2:17pm   #8
 
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InwestorWkapeluszu started this thread To be clear:

He sold and didn't lose 60 pips - am I right?
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