{"id":13936,"date":"2011-08-23T15:49:46","date_gmt":"2011-08-23T19:49:46","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=13936"},"modified":"2011-08-23T15:49:46","modified_gmt":"2011-08-23T19:49:46","slug":"forex-trade-our-risk-reward","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/forex-trade-our-risk-reward","title":{"rendered":"Forex Trade\/ Our risk reward"},"content":{"rendered":"

Before entering a trade, we should know what is our return based of our risk.<\/strong><\/p>\n

Taking risk is the price of achieving returns; therefore you cannot cut out all risk.<\/p>\n

It is not completely true about the fact of an investor who takes on more Risk expects higher Returns.<\/p>\n

In the picture below, you can see the risk involved with its original stop loss and the return of the trade.<\/p>\n

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The trade originated after the price reached levels of support, then expect a pull back to the upside.<\/p>\n

Target is identified by other levels of Fibonacci retracement.<\/p>\n

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.<\/p>\n

Stop loss in pips -8.6. Trade pushed +47 pips making this trade a higher return than its original risk.<\/p>\n

Low risk, high returns. That is what all investor expect from their investment.<\/p>\n

In our forex trading, our goal is to accomplish trades that give us at least double return of our risk.<\/p>\n

For more info, do not hesitate to email us at: amsalazar@smbcap.com<\/a><\/p>\n

Related articles: finding levels of support<\/a>, forex lesson of the week<\/a>, forex trade of the week.<\/a><\/p>\n

Please see video below for more about this forex trade<\/p>\n