Before entering a trade, we should know what is our return based of our risk.
Taking risk is the price of achieving returns; therefore you cannot cut out all risk.
It is not completely true about the fact of an investor who takes on more Risk expects higher Returns.
In the picture below, you can see the risk involved with its original stop loss and the return of the trade.
The trade originated after the price reached levels of support, then expect a pull back to the upside.
Target is identified by other levels of Fibonacci retracement.
The key point of this trade is the original stop loss. The original stop loss is placed at last lowest price, also found at level .618 of Fibonacci retracement.
Stop loss in pips -8.6. Trade pushed +47 pips making this trade a higher return than its original risk.
Low risk, high returns. That is what all investor expect from their investment.
In our forex trading, our goal is to accomplish trades that give us at least double return of our risk.
For more info, do not hesitate to email us at: [email protected]
Related articles: finding levels of support, forex lesson of the week, forex trade of the week.
Please see video below for more about this forex trade
4 Comments on “Forex Trade/ Our risk reward”
I have always wanted to trade forex online and have done a lot of
reading including attended a short course. Now I’m looking for a genuine online
forex system to use. Please share what you actually have tried out and found
profitable.
Forex system, Forex technique
Hello,
Automated systems used for the forex trading are very useful in controlling the strategies used for the trading.. It automatically do updates.. Your post is a great resource related to it..
It does not matter how you achieve it, what matters is that you get a good forex trading education, work, and ask you to go with the previous methods work for you.
You have to risk If you earn some money.