Successful traders should only execute trades with a minimum 2:1 risk-to-reward ratio, meaning they risk $100 to potentially make $200, ensuring that potential profits significantly outweigh potential losses.
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Millionaire Trader Reveals The Golden Risk/Reward StrategyAñadido:
[singing] >> We always make sure that we make every [music] single trade an asymmetric risk-to-reward decision, which means we never ever take trades that is less than 2R. So, if it's like 0.9R, it's not worth it because you can lose $100 and you can only make what, $94? Keep things very simple [music] and mechanical.
You'll risk $100 to make $200. So, you're getting back twice in return of what you're risking. [music]
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