Risk-Reward Ratio Calculations for Traders
Filed in Money Management, Trading Plan on Oct.11, 2009
Formulating a risk to reward ratio is an integral part of the future trader’s trading plan.
- Og Mandino
Formulating a risk to reward ratio is an integral part of the future trader’s trading plan.
Futures traders should spend the bulk of their efforts formulating and adhering to a money management plan. Doing so is what separates the winners from the losers.
Many traders enter the futures market arena because the capital requirements are small while the profit potential is very large. Learn why this often spells disaster for most traders.