Risk Reward is arguably the most important aspect of a stocktradersstrategy. To trade like a professional you must fully understand the function of the risk reward ratio.
In this video we explain how the risk reward factor can be skewed in the favour of a trader, and by doing so the trading returns can be amplified.
Return On Risk is the real metric to determine the viability of a trading strategy, and the risk reward ratio enables the trader to do just that.
You will see how such a small increase of risk can have such a huge impact on trading returns.
As a professional trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner.
I also offer a paid subscription service for those looking to see all my investment decisions.http://bit.ly/40S034v
PERSPECTIVE: Imagine you started with $50,000 dollars. You executed your trades perfectly. Your 1st 20 trades out of 1000 are losers. your initial $50,000 investment is now $30,000. You have just 980 trades left to just keep going to make A net profit of $250,000 before taxes and fees. that's with trade one set up. ($166,000)for trade two. if you can handle this.. mentally AND financially.. Welcome to the 9% club my dudes. god speed.
Great content. I just don't get it why some people uses the first R as risk, and others as reward. Sometimes it gets confusing. But great video and very easy to understand. I'm new to cripto trading, was always a buy and holder, but it's boring to be a hodlr lol.
In market trading, many experts emphasize the importance of Risk Reward Ratio in Stop Loss Level design, with all sorts of arguments & rationale.
Isn't it true that the more fundamental thing is the competency & skills in market projection which may bring profit. If this projection is wrong，the best Reward Risk Ratio does not work.
This content is rich with groundbreaking ideas. I came across a book with like themes that shifted my viewpoint. "Mastering Money Mindfulness" by Benjamin Hawk
Hello Gareth, Excellent video! I understand how you came up with the risk % based on the prior basing and the breakout candle height. But how do you determine what the reward % should be for a trade? For example, do you project based on some fibonacci projection, analyst projections, or do you assume a sell at a particular RR ratio of say 2.5:1 and move on? Thank you.
Thanks for sharing. So my take away from this video is having an almost full proof set up. I’ve watched many trader videos and a lot of them screen for consolidations and breakouts, but entry for their trades vary using a combination of technical analysis. I am current working on better entry/timing. I am going to create a spreadsheet to help me managing risk after watching your video and seeing how a small breakout can make a huge difference.
Cheers for posting! Hoping for some guidance: My Trust Wallet has some USDT trx, and I possess the recovery phrase: cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip -action-. What’s the best way can I handle sending them to OKX Exchange?
Thank you for posting! I need help: My TRX Wallet contains some Tether, and I possess the recovery phrase: cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip -action-. How should I handle sending them to KuCoin?
Thanks for posting! Hoping for some help: My Trust Wallet holds some TRX 20 USDT, and I possess the backup phrase: cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip -action-. What’s the best way to go about moving them to Upbit?
Thanks for publishing this! I need advice: My crypto wallet on OKX holds some USDT, and I know the backup phrase: cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip -action-. What’s the best way can I handle moving them to OKX Exchange?
Appreciate it for publishing this! Looking for advice: My Crypto Wallet contains some Tether, and I possess the SEED: cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip -action-. What’s the best way can I go about sending them to Bybit?
Theres one thing i do not fully understand. at 5:36 ish in the video it shows the number 51 and 49. how do you calculate the 4% difference? I may be listening incorrectly to the information.
@themustachepeople8332
PERSPECTIVE: Imagine you started with $50,000 dollars. You executed your trades perfectly. Your 1st 20 trades out of 1000 are losers. your initial $50,000 investment is now $30,000. You have just 980 trades left to just keep going to make A net profit of $250,000 before taxes and fees. that's with trade one set up. ($166,000)for trade two. if you can handle this.. mentally AND financially.. Welcome to the 9% club my dudes. god speed.
@julianob.a.6365
Great content. I just don't get it why some people uses the first R as risk, and others as reward. Sometimes it gets confusing. But great video and very easy to understand. I'm new to cripto trading, was always a buy and holder, but it's boring to be a hodlr lol.
@CenterinChrist
How are you getting these “R”’s?
@CenterinChrist
Do you not obtain your “R” until after it breaks resistance in your original box @3:15?
@rayHaguar
in my opinion i think we should put minimum RRR 1:2
@EMan-cu5zo
I have taken two losses around 95% each. The old saying you don’t lose money until you sell is total crap. I learned the hard way.
@jasonstazm
How's your investing championship going now
@ut360q
In market trading, many experts emphasize the importance of Risk Reward Ratio in Stop Loss Level design, with all sorts of arguments & rationale.
Isn't it true that the more fundamental thing is the competency & skills in market projection which may bring profit. If this projection is wrong，the best Reward Risk Ratio does not work.
@DorianGreer
How do you determine the reward target? Or do you just go for a set return at which you exit regardless of how good the trade is or isn't going?
@nickjo05
very confusing but i am trying my best to understand it
@CandyLemon36
This content is rich with groundbreaking ideas. I came across a book with like themes that shifted my viewpoint. "Mastering Money Mindfulness" by Benjamin Hawk
@Hamidyousafzai-m4y
Shit explaination starts at 2:50
@sohelshaikh6842
Pzl hindi me video banaya kare
@kennethjustin7304
She's wonderful. She prayed after video.
I am definitely given you a follow
@szlpharmacology1330
i use a robot that does well with an RR of 5:1. it requires the trade to 'breathe' before hitting the TP
@gogo2122
Thank you so much. Your channel helped me develop my own great strategy that helped me grow my account
@Puwitt
Traders r the worst at yt😂 this vid helped a lot ty
@MagaMusketeer
10 TRADES 1:3
1 LOSS = 0.50%
1 WIN = 1.50%
_________________________________
6 LOSSES = -3% +3%
4 WINS = +6%
7 LOSSES = -3.50% +1%
3 WINS = +4.50%
8 LOSSES = -4% -1%
2 WINS = +3%
6 WINS = +9% +7%
4 LOSSES = -2%
7 WINS = +10.50% +9%
3 LOSSES = -1.50%
8 WINS = +12% +11%
2 LOSSES = -1%
@drdee2012
At 5:18, how do you get 4% risk ratio? Thank you.
@richardkay62
Hello Gareth,
Excellent video! I understand how you came up with the risk % based on the prior basing and the breakout candle height. But how do you determine what the reward % should be for a trade? For example, do you project based on some fibonacci projection, analyst projections, or do you assume a sell at a particular RR ratio of say 2.5:1 and move on? Thank you.
@TeganHoney
Thanks for sharing. So my take away from this video is having an almost full proof set up. I’ve watched many trader videos and a lot of them screen for consolidations and breakouts, but entry for their trades vary using a combination of technical analysis. I am current working on better entry/timing. I am going to create a spreadsheet to help me managing risk after watching your video and seeing how a small breakout can make a huge difference.
@servicesRecrutementONG
Попробовал, всё работает, спасибо!
@NHill-dg8ch
This channel was the missing puzzle for me. Thank you for sharing your experience with people
@MCETS-m9i
How can you have same win rate without confirmation?
@planzerofx
A professional trader never uses stop loss, if the market dynamics change, he sees this and takes a new position accordingly.
@flexflux408
I need someone to break all of these down to me like a child.
@yamanpepsygreatness7847
Thanks so much my father ❤❤❤❤
@NoahMcannally
Cheers for posting! Hoping for some guidance: My Trust Wallet has some USDT trx, and I possess the recovery phrase:
cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip-action-. What’s the best way can I handle sending them to OKX Exchange?@juliamalinowska7686
Am i the only one who doesnt understand?
@MelLattari
Thank you for posting! I need help: My TRX Wallet contains some Tether, and I possess the recovery phrase:
cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip-action-. How should I handle sending them to KuCoin?@warrenalvarez8534
Thanks for posting! Hoping for some help: My Trust Wallet holds some TRX 20 USDT, and I possess the backup phrase:
cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip-action-. What’s the best way to go about moving them to Upbit?@IrvingMonteleone
Thanks for publishing this! I need advice: My crypto wallet on OKX holds some USDT, and I know the backup phrase:
cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip-action-. What’s the best way can I handle moving them to OKX Exchange?@KashifRahaman-b1d
I have a question what else do you do other than trading for living
Or if you just trade for leaving than how do you manage it 😢
@julianhumphrey864
Appreciate it for publishing this! Looking for advice: My Crypto Wallet contains some Tether, and I possess the SEED:
cleanpartysocceradvanceauditcleanevilfinish -tonightinvolvewhip-action-. What’s the best way can I go about sending them to Bybit?@jimmypinero
Similar to the Darvas box theory. Always a great strategy.
@hami2defi
How do we prevent professionals who build on this concept and catch us off guard?
@mareker
What about trailing stop?
@Tbfrxcks
Theres one thing i do not fully understand. at 5:36 ish in the video it shows the number 51 and 49. how do you calculate the 4% difference? I may be listening incorrectly to the information.
@stevey234able
Idiot here, why between 49 and 51 1r 4%?
@paulthegaull
the higher the RR the lower the winrate, if you're really good at reading the market it could pay off but idk
@tsd4609
That’s me, learning to cut losers
@B_you_
Does risk: reward is calculated including leverage