To increase your chances of profitability, you want to trade when you have the potential to make 3 times more than you are risking.

If you give yourself a 3: Just remember that whenever you trade with a good risk to reward ratio, your chances of being profitable are much greater even if you have a lower win percentage. On the very surface, the concept of putting a high reward-to-risk ratio sounds good, but think about how it applies in actual trade scenarios.

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Right off the bat, the odds are against you because you have to pay the spread. Now, if you increased the pips you wanted to risk to 50, you would need to gain pips.

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By doing this, you are able to bring your reward-to-risk ratio somewhere nearer to your desired 3: Not so bad anymore, right? A position trade could have a reward-to-risk ratio as high as The worst part of success is to try to find someone who is happy for you.

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Understanding Forex Risk Management

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