Risk reward ratio in zerodha varsity

[Sajin_Menon]

Hi,

Iam a beginner and pls help me if anyone can advice if risk reward concept is covered in zerodha varsity for me to learn in depth and in which topic one can find it.

Brgds
Sajin

[Bhuvan]

@Sajin_Menon

Iam a beginner and pls help me if anyone can advice if risk reward concept is covered in zerodha varsity for me to learn in depth and in which topic one can find it.

Yep, explained here

Risk Management and Trading Psychology – Varsity by Zerodha

[Sajin_Menon]

Hi,
I would really like to understand if risk reward concept is practical for intraday traders.
I find that very frequently my stop loss is getting triggered since for intraday I look for very small profit like 0.5%,0.7% and so on.Now in this scenario my target is not that wide and with risk reward concept my stop loss too is very near to my entry price which might be the reason my stop loss is getting triggered every time.

Before using risk reward concept my stop loss was little deeper and profit the same as mentioned above and eventually I use to achieve my target more than 70% of the time.But with risk reward concept iam not able to achieve my earlier accuracy.

I really would like to know that should I be persistent with this risk reward concept (I mostly use 1:2) for intraday . Is it really possible to maintain risk reward concept for intraday traders?

Brgds
Sajin

[Spaceship]

@Sajin_Menon

Before using risk reward concept my stop loss was little deeper and profit the same as mentioned above and eventually I use to achieve my target more than 70% of the time.But with risk reward concept iam not able to achieve my earlier accuracy.

I really would like to know that should I be persistent with this risk reward concept (I mostly use 1:2) for intraday . Is it really possible to maintain risk reward concept for intraday traders?

Brgds

Sajin

Dont go by theoretical texts. There’s big difference while trading practically & you get to know lots of things by experience. Yes stop loss can get triggered easily in intraday during slight increase in volatility. Books wont help u.

I bought tata motors , 2 days back after its results were declared. I bought at 438 & it crashed to 431 in few seconds. I didn’t put stop loss. I was in loss of big 7 rs. The share price fell down till 431 & bounced back in no time and I sold at 440.20 . Profit of 2.20 rs.
But it was not a good trade. I could have made much more on it by either way, going short or long.

Point here is If I had put a stop loss. my position would have closed in LOSS.

[Lets_Invest]

@Sajin_Menon

Before using risk reward concept my stop loss was little deeper and profit the same as mentioned above and eventually I use to achieve my target more than 70% of the time.But with risk reward concept iam not able to achieve my earlier accuracy.

If You were Achieving your Target with 70% Accuracy its Very Good for you to follow your own stratergy which was giving you profit.

Many Investor have said if you are good at doing something keep doing it.

80% Accuracy is very Very Good in Intraday Trading and you were Achieving 70%.
I would recommend you to follow your own stratergy.

[Sajin_Menon]

Thank you so much Bhuvanesh.

[Sajin_Menon]

Thank you for the insight.

[Sajin_Menon]

Thank you for the honest reply.
Yes as suggested I would go back to my own strategy.

[DetectivE_A_2_Z]

@Sajin_Menon here how stoploss depends on time frame