weekend thread early... topic: risk management, page-3

treggs,

Risk management, the best thing I learned from this thread so far. It is not because of lack of better posts, rather I am slow learner.

For tiny portion of these who is puzzled by ATR, it is Average True Range.

I often think what is risk reward? Often we have seen some neat analysis concluded with risk $1 to make $3. Never risk $3 to make $1, such and such. It is actually a kind of risk management.

From the top, it is a great risk management system. But what if the chance to lose $1 is four times as much you win $3?

It means if you have average 4 losing trading and 1 winning
trading, you still lose $1. Am I right?

The odds of winning to losing ratio cannot be ignored.

I knew top traders seems to have the ability to figure the odds and risk reward ratio at the same time.

This is all the fancy systems, charts, cycles, moon and stars about!

Good luck, and have a great weekend.