Quote from: lixer on July 31, 2020, 07:37:39 PM

Quote from: Bright_dhykseen on July 19, 2020, 01:04:17 PM

I see traders boast about the Amount of pip they made in the market but I believe what should matter to you as a trader is your Risk to reward ratio.

If you are changing your instrument of trade as a result of the pip-move of a pair/currency, I think you should re-think your decision and factor in Risk to reward.

So many traders are not profitable yet because they fail to understand this.

It's high time traders stop chasing shadows.

I agree with your point. Most of the successful traders only show their great profits to the community and this makes the new traders think that making profit is easy in crypto market. And this often turns into disappointment and discouragement of the trader when the lose their capital in trading. Profits are high, but so are the risks.

So, all the traders should mention their risk to reward ratio so that the newbies can understand the market and its volatility (unstable behavior) and the risk factor involved before they pour in their capital.

The ideal risk and reward ratio is 2:1, the higher the reward the better but make sure that the risk is low what is that mean? It means that every trade, your target profit is twice or more as your stop loss levels. The risk and reward ratio is important not just in risk management and also it can help you to identify if a certain trade is a worth it or not. I do not trade altcoins with a low reward because for me the risks are too high and it is not worth it to trade.