Chart - Z1P, page-6958

Hi,

IMO

Difficult to answer as is not a one size fits all, a difference between lt vs swing vs day vs scalp trading ... we all have different risk appetites and the risk reward might ratio differ depending on the type of trading you, which depict your chart time frame i.e. there are trends within trends

Yes, I have been caught on every instrument (incl. Zip) I traded ... no one can have a 100% trade win ratio e.g. scalping -> I recently shorted Nasdaq (few trades) and on Friday night/Sat morning (Aus time) my last trade, I had a short that was in big profit ... I failed to take profit / move my stop as I had other trades on the go as well, it turned on me and was stopped on that one making a loss. However I am still up due to prev trades. The best setup can a loser and worst one be a winner. Overall I made money on Nasdaq, although I lost that one.

This week was great trading for me on both Zip and APT.

Will try and explain ... Risk:reward (RR) ratio per trade -> e.g. lets use 1:2 ... which means I need to lose 2 for every one I win to break even ... if I win:lose 50% of my trades = means I make money ... the higher the RR the more I make. Having said that the RR is different depending on the type of trading I do, the pattern that formed, what the volume is e.g. as a general for swing trades I will use a higher RR than for scalping.

The key for me is to never trade what I cannot afford to lose e.g. I will decide across all my trades that my risk is $1 (stop loss) ... so I always lose $1 if a trade go against me, but when I win I will get rewards of 2 and higher e.g. last week I shorted APT and Zip just before close with the expectation they will gap down the next morn ... APT gapped down many, many dollars on a opening -> cant remember exactly but think I made a RR of 1:30 in one second from opening.

Anyways, hope I answered your question ... perhaps also check the web there are many different strategies e.g. all or nothing, taking x% of the table when 50% of price target is reached, moving your stop loss to follow the trade, etc. Also there are statistics available re RR ratios.

Cheers