I m trading in stock and use 1 min chart no any indicator. Pls suggest me
Risk = Limited
Reward = Unlimited (trailing stop)
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3:1 is a reasonable one.
A small correction there. Since it’s Risk to reward ratio hence, 3:1 would mean you are risking Rs 3 for profit of RS 1 which is outrageously high risk.
Anyway, 1:3 is considered good. Anything above 1:5 is best. When you are scalping sometimes you have to do with 1:2 RRR but ideally above 1:3 is considered best.
yes I did a mistake there, but I have read about a trader in market wizard book whose risk:reward is completely opposite but he still makes money as his win rate is extremely high.
Yeah , well there will always be someone who likes to break the rules but anyway, I would recommend having stops or at-least mental stops if you are experienced. I scalp mostly so I don’t get time to setup hard stops(system stops) so I rely on mental stops… this one needs hell lot of self-control, not gonna lie.