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Ghettoyute's avatar

Hello sara, i am a systematic risk manager and i have a fixed rule of 1:5RR. My data shows 3wins aiming 1:5RR in 15 trades will still put me up in profit. The problem now is 80% of the time I analyze the price next Demand/supply it plays out as planned which if i had extended my take profit I would be getting more than 5RR. The back side of extending my RR is price may give me a 5RR and reverse to change structure. My question is, being rigid with my 5RR trading rule, is it a limitation to my trading or a good discipline ?

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Jeremy Mortis's avatar

I think we learn more about our strengths and weaknesses as traders. If a trade goes against me, I try to imagine if I'd make the same trade at the current price and setup. If not, I cut my losses and look for a better opportunity. That's the plan, but I need to do a better job of following it. Not giving up is a big part of being in business and karate for me, I need to do a better job of reframing "giving up" on a trade.

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