Popular Trading Tips: Truth or myths?

[yanka18]

Never take an operation that does not have a risk-re-centered ratio of 1: 3 if you have been operating for a while, you will have realized how difficult it is to maintain a good risk-reompensses relationship.Let's put an example: you place a 20 pip stop loss with a gain objective of 60 pips, but the price takes you out of the market before turning in your favor.Then you decide to expand the 40 pips stop with a 120 pips goal.Now your broader stop gives you room for volatility and your operation is still alive, although at some point it has retreated 20 pips against you.You are happy waiting for the price to reach your goal, but after touching a benefit of 70 pips, the price turns against you and ends at Stop Loss or Break Even.I am sure that many have gone through this situation.The reality is that, more than half of the time, trying to maintain a good risk-reompensation relationship can lead you to a loss streak and worsen your performance.In many cases, even a winning operation does not compensate all accumulated losses, which leaves you with a negative balance.You never risk more than 2% of your account by operation if you have a proven and profitable long -term system, it really doesn't matter how much risk, in the end you will benefit.You just have to make sure not to operate with such a large lot size that you cannot support volatility or margin requirements.If you have been operating profitably for a considerable time, increase your risk to 5% or more is not a bad idea;In fact, it will make your account grow faster.However, if you still do not fully trust your system, then, the 2% rule can be prudent.Or, simply operate with a small or demo account until you have confidence.My point is that the famous 2% rule limits the containers' potential that are already consistent.The technical analysis works this is one of the greatest myths that many believe and that the "gurus" love to sell in courses and books.Graphics patterns, indicators ... All this is part of the technical analysis.But let's look at an example: how does the price react to a support or resistance level?You can bounce and turn, or you can cross it like a hot knife in butter.In most cases, there are two possible scenarios and there is no way to predict which will happen.If you take an operation based on a technical pattern, you are actually doing a bet with considerable risk.If you are wrong, you get a loss.On average, the probability of winning or losing is 50%.Some who sell strategies claim that they work 60% of the time, but in reality, they are exaggerating the numbers to make their systems look more reliable than they are.For me, only a system that has been tested for a long time with at least 80% effective can be considered high probability (this is just my personal opinion

[paulaampugay]

We agree on points 2 and 3, but on the risk-reompensation ratio ... I prefer to ensure 20 pips and close the operation.I also accept relations 1: 2 or even 1: 1.I prefer to pocket those 20 pips today than to wait three days for a possible 1: 3 configuration.

[gvalgivieso]

I cannot attribute the credit for this, but a member who no longer publishes once said about the levels of profits: * "Putting a profit is like telling the market where to go." * Think about it, why did someone with a retail account say to the market what to do?Put your stop loss in the most logical place and stay in the operation until you see a reason to leave.Forget the risk-reompensses relationship.

[sangmaMMM]

Thinking in terms of R/R is nonsense, as well as moving the Stop to Breakeven or blocking a certain amount of benefits.If you think the price will rise, buy.If you think it will go down, sell.Using R/R or moving the Stop Loss to Breakeven is trying to impose your will in the market, as if the market cares how you are positioned.The market does not worry about whether you are long, short or side.Each decision must be based on what the market is doing and what you think will do, not at the point where you entered.Your entrance has nothing to do with what will happen next.

[mubengi7]

Here is a classic post of Hanover by deniving a lot of miles of the Forex: *"Twenty myths widely believed in Forex. I would have saved me a lot of time and money if I had understood this when I started ..." * *

[Gblajan83]

Totally agree.Ferruufx mentioned something intelligent in another thread: tickets do not matter as much as operation management.Why obsess a specific point of entry?

[enemy13]

I don't think Numbnuts were saying that exactly.In addition, I suggest you read myths #2 and #4 of the Hanover post.

[ChamlieVJ]

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[Gusanagui]

Do you say that tickets and exits have the same importance or that one is more important than the other?

[pamgok]

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[Pulguilaa]

Thanks for the clarification.We agree.What do you think about myth #2 on capital management?

[pilu11]

I tried this yesterday: a system with a 70% success rate and a 1: 1 ratio can easily exceed another with a rate of 30% and R/R of 1: 4.

[cgc]

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[pacoblasalmengmll]

At the end of the day, trading is an exercise of patience.If you have a system with advantage, it is only about executing operations mechanically and being patient.Regarding the risk-reompensses relationship, in the long term (years (years

[Agmi8794]

Do you expect little setbacks before entering an operation?Or do they only look at the opening/closing of the daily candle?

[yanka18]

Yes, use the relationship that best works for you.*"For the market to work, you need people who think they can overcome it."*