When it comes to trading, the most important concept that a trader needs to master is the risk/reward ratio. This relationship is given in the long term, the probability of success of a trading system. The first thing that a trader has to do, when to enter a trade is the management of risk. The risk and Money Management is the most important thing for a trader. The profits come later. Novice traders ignore the importance of risk management. When they get their fingers burned, they learn the importance of Risk and Money Management.
The most important thing in the Risk and Money Management is the Risk/Reward Ratio. Do not enter a trade if the Risk/Reward is less than 1/2. You can calculate the risk with the amount of money or pips you are willing to lose. This is done through the use of the Stop Loss.
Calculate the reward for the benefit that is expected to perform in a trade. This is calculated with the help of the Fibonacci Ratios in their majority. Then, use a Take Profit Order to fix your reward. By dividing the points that you are willing to lose the pips you expect to make, you calculate the Risk/Reward Ratio of a trade. Suppose, you are about to enter a trade. You have $1,000 in your trading account. This means that with a 1:100 leverage, you can trade a standard lot of $100,000.
Now, let’s suppose that you are willing to spend $300 on a trade. This means that you are willing to lose 30 pips on a standard account, 1 pip is equal to $10. In a trade, you should get at least 60 pips or $600 otherwise, you will just break even in the long term if you use a risk/reward of more than 1/2.
This means is that if you lose a trade, you can recover the loss in the second trade with this risk/reward ratio. Michael Lenee is an experienced forex trader, with 15 years of operating in the foreign exchange markets. Recently, he released his Forex Counter Attack Strategy that has an excellent risk/reward ratio of 1/3.
What this means is that this Forex counter attack Trading System has 3 times more chances of winning compared to losing. Michael was able to turn $100 into $15,455 in just 3 months. He was able to make a NET PROFIT of 15,355% in 3 months or in a astounding 5118% in each month.
This whopping roi is simply impossible to if you trade stocks or other markets, or even the forex trading with other trading systems. Suppose, Michael has started from the $1,000 instead of $100. His Forex Counter Attack System would have been $1,000 to $154,550 in just 3 months. Something really amazing.
The distinctive marks of this Forex Counter Attack System is the 3 indicators that give extremely powerful trading signals with low risk and high return characteristics. This system uses a very tight automatic stop loss which gives a fabulous Risk/Reward of 1/3. This system can be used to trade any currency pair. It can even be used to trade stocks and commodities.
Uses easy-to-use trading strategies that depend on the 3 indicators that give extremely powerful which leads to mechanical signals with a minimum Risk/Reward of 1/3. It has a structure in powerful money management system. Michael is willing to let you try his Forex counter attack System FREE of RISK for 60 days. What you need to do is to test this system on your demo account and see if it’s done exactly as Michael says. Otherwize go for a refund.