On foreign exchange markets, two basic trading principles work in the long-term to achieve profitable results.
- We make more profitable trades (i.e., we have a higher percentage of success than 50%).
- We realize higher profit trades (positive risk reward ratio – RRR).
These two simple principles should be a cornerstone of our trading plan and we should always decide which direction we will take. According to our own experience, there is a problem that hardly any trader can combine both ways to generally real
ize higher profits than losses.
For this reason, especially for beginners and intermediate traders, we recommend you choose one of the above options, and then stick to it constantly.
Personally, what also turned out useful - we have seen the most profitable traders that consistently keep their trading plan and one of the principles above - to a certain extent they trade like robots, always the same over and over again.
Only in this way you can in fact reveal your possib
le failures, and constantly improve your trading results.
In the table below you can see the Risk Reward Ratio (RRR), and the percentage of success we achieve with long-term zero results, therefore we Break / Even.
Every time we are able to achieve a higher percentage of profitable trades with the given RRR, or at a given percentage of successful trades achieve better RRR, we real
ize the long-term profitable results.