Analysis and decision-making helps remove the emotional
(gambling) aspect and allows traders to confine their prospective
trading strategy to a 1:2 – 1:6 risk versus reward base.
Anything less than 1:2 becomes unworthy of the time
to trade when the return is no more than risking one
pip to gain one or one and one half pips.
Anything more than a ratio of 1:6 becomes an improbable trading scenario.
http://i.gyazo.com/cecff60e86d58c15a63a7c1e397afb72.png
(gambling) aspect and allows traders to confine their prospective
trading strategy to a 1:2 – 1:6 risk versus reward base.
Anything less than 1:2 becomes unworthy of the time
to trade when the return is no more than risking one
pip to gain one or one and one half pips.
Anything more than a ratio of 1:6 becomes an improbable trading scenario.
http://i.gyazo.com/cecff60e86d58c15a63a7c1e397afb72.png
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