The Risk Reward Lie

I got an interesting question from a member the other day. It’s a question I get a lot. This member asked “how can you make money without a positive risk/reward ratio?” If you’ve followed my trades for any time at all you’ll notice that I’m not a big fan of risk/reward ratios. Very often my risk/reward ratios are very lopsided, and by that I mean I’m risking more than I expect to make in the trade, so naturally people are confused and they wonder how can this be? After all, everyone knows you need to have at least 2:1, and ideally 3:1 reward to risk, right? That’s what all the gurus say. But is it true? Yes, on paper risk/reward ratios make perfect sense: your reward should be more than your risk, but the problem with risk/reward ratios is that no one knows the reward side of the equation! We all have our best guesses of where the market will go, but the fact of the matter is no one can consistently predict where the market will go next, so why would you base a trade/n
https://www.indicatorwarehouse.com/the-risk-reward-lie/