MODULE 5: Risk Reward & How I Personally Manage Trades

[op_liveeditor_element data-style=””]

LESSON: Risk Reward & How I Personally Manage Trades

[/op_liveeditor_element]

[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]In the price action course we teach you how to manage you trades with a very specific “first area” strategy.

It is then up to the individual trader to formulate a plan that suits their trading style and personality.

This section is not trade management advice, but instead an insight into how I personally manage my trades to gain the best risk reward whilst still keeping the trades as low risk as possible.

Risk Reward and Win Rates Crucial

Your end goal is consistent trading profits and to make this happen you need to keep in mind that the risk reward you are averaging when you win is very important. However; it does not matter if the risk reward is very high or very low like some will tell you. You can make money with a very small risk reward rate, and still lose when you are making high rewards if you lose enough.

To make money you need to know this yourself for your own trading and work out your average win rate and the risk reward you need to make to stay profitable.

With this in mind the more reward you start to accumulate the more profit you are going to make and this is why risk reward is important. It is a very fine line between making low risk trades and also trying to make good risk reward trades. Everything that has been covered in the price action course still applies and if you fail to protect yourself at the first areas you have only yourself to blame if price turns and stops you out.

Check out the video lesson below…[/text_block][/op_liveeditor_element]