Post
Topic
Board Trading Discussion
Re: Risk/reward ratio problems - Risk management
by
reactorjuno
on 04/09/2018, 15:09:00 UTC

Thats the number which you are sticking to or may be thats the ratio you have decided by yourself and I guess you need to come out of it first and then you can decided another strategy so that you will have good profits back to you. You simply start a trade first and depending upon the coin which you are trading you should put up 5-10% loss as lowest limits of bottom and also keep upto 5% of profits to take up so that you can quickly gain and close the trade. The loss is set to bigger limit because truly speaking you need to give your trade a time and it may happen that before it goes that far down it may just come up very fast and profit you more. So you have to keep changing your % stop loss likewise to have higher success rate.
And that's exactly why people lose money, not only in cryptocurrencies but also in the stock market. If you set up a stop loss that will make you lose more than the potential profit, you will need 60% of more successful trades, very demanding mentally and in my opinion a very bad idea. Interestingly, that's what many beginners do. Go figure...  Smiley