What's your risk : reward ratio?

[vchohan1]

Hello Again!

I wanted to get a general consensus of what people's risk to reward ratio ranges from and to before entering a trade. I am only looking at prior to taking a position.

I'd be keen to hear from all, but would really love to know from traders who trade equities.

Thanks all!

Vikash

 

[BearBull Trading]

Whilst the following may have the "Gurus" who regurgitate the mantra of say "your risk reward must be 1:3 to be successful" jumping out of their chairs, I will risk their wrath & say this....

I have no idea of my risk / reward before entering a trade.

Whilst I will have a stop (really for emergency purposes as most trades are exited/managed before its hit) & I have areas I think the market may move to, once the trade is entered the market is dynamic from the very next tick.

If there is a reason to get out - get out....If there isn't - stay in until there is a reason, whether that is 1 tick from entry or 100 points.

BBT

 

[forker]

You can be successful on 1:2 although I find those are best mixed in with 1:3. You get far more 1:2 opportunities than you do 1:3 and this pattern continues as rewards get greater.

 

[j.n]

5:3, every trade. Give yourself a fighting chance!

 

[Revorocks]

I usually aim for 1:2 or greater when initially taking the trade.
I enter on a 4Hr trend pulling back and resuming and take some profits around the swing high/low.

I'll take 1/2 the position off at 1/2 or the swing high/low of the last pullback and then hold the rest as long as I can. Some go to 1:10, others don't go any further and stop me out at 1:1. Really varies quite a lot but I follow the trend so risk reward depends on how good the trend is.

 

[Dinos]

I aim for anywhere between 1:1 and 1:2, depending on the time of day and volatility etc.

 

[vchohan1]

Thanks all that's really helpful. I'm looking at a minimum of 1:2 with a view of doing something similar to Revorocks, selling 1/2 off at a target and aim to let the rest ride while managing the trade / stop loss.

 

[ph_trader]

1:1 - 1:2 ... usually thats how i put it, and stay flexible depending on the market read, but as much as possible avoid unnecessary risks.

 

[radex78]

I am noy use spesific risk reward ratio in my trades, but still always put stop loss to manage the risk and target will depending with analysis which usually only cut profit , maybe some trader they use risk reward ratio but also there are certain trader use hedging strategy

 

[Mr Sept]

Nah ........if your going to make One be sure not to loose more than One.
We/I use this as a Mantra, keeping those "...why did I trade that...!!" trades out of the picture.
And we/I Scale out....<-----mucho important

 

[itspossible]

Nah ........if your going to make One be sure not to loose more than One.
We/I use this as a Mantra, keeping those "...why did I trade that...!!" trades out of the picture.
And we/I Scale out....<-----mucho important

theres that WE again

 

[radex78]

Nah ........if your going to make One be sure not to loose more than One.
We/I use this as a Mantra, keeping those "...why did I trade that...!!" trades out of the picture.
And we/I Scale out....<-----mucho important

I am assume if loss also part in trading which sometime inevitable, because in fact I can define the tred exactly for ahead movement, and use stop loss make more comfortable for me