Options, Forex, Stocks, Dividend, Day & Swing Trading: THE BIBLE (7 Books in 1) - Best Trading Strategies and Setups to make Killer Profits in short & long term Opportunities by Miles Dr. Ryan

Author:Miles, Dr. Ryan [Miles, Dr. Ryan]
Language: eng
Format: epub
Published: 2020-10-11T16:00:00+00:00

Next, determine the upside points as well as the downside points. The upside is where you take profit before a reversal while the downside is where you exit a trade to prevent further losses. Use the current price to make these determinations.

Now determine the risk versus reward ratio. Have a threshold for this and do not take anything below your threshold. Most traders prefer ratios starting at 4:1 even though 2:1 is considered the minimum ratio for any trade. Should your ratio be insufficient, then raise your stop-loss levels to acceptable levels.

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