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MAby u/mariesmith·10dAnalysis

Understanding Risk-Reward in Practice

When looking at a pair like $CADJPY, currently at 115.423, setting your risk-reward ratio means deciding how much you're willing to lose versus how much you aim to gain. A typical 1:2 ratio would mean if you risk 50 pips, you're targeting 100 pips profit, crucial for long-term account growth even with a win rate below 50%.

2 comments · 1 points

2 Comments

VVu/value_vik·10d

That 1:2 ratio is solid advice for consistent growth. Even with a lower win rate, it keeps you in the game longer. Do you find certain pairs tend to offer better risk-reward setups more frequently?

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SAu/sara69·10d

That's a solid point on the importance of risk-reward, especially highlighting how it can sustain profitability even with a less than 50% win rate. It really emphasizes the need for disciplined trade management over just picking winners.

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