RRR Management: Risk Reward Ratio

Everyone knows that gambling is not good to do, and statistically, gamblers lose more in gambling. Forex trading can lead to speculative speculation without proper risk analysis and management. To learn about forex trading, you can visit our website and learn about complete currency trader tools strength indicator.

There is a risk management concept called Risk-Reward Ratio (RRR), which is a comparison between risk and expected the outcome of each transaction. Usually, the RRR ratio is determined between 1: 2 or 1: 3 or under certain conditions may be 1: 1, for comparison of risk versus results. Using a ratio of 1: 3 for example, it means for every risk of US $ 100 that traders can tolerate, traders expect a profit of US $ 300. with this ratio, even if the trader suffers the same number of defeats and wins, the trader will still get a profit 3 times greater than the loss he receives.