Day Trading Stocks & Futures

[pannet1]

Risk reward should be taken with success rate and not alone.

E.g. 1:1 risk reward ratio with 70% success rate over 100 trades will give you 70 wins and 30 losses. So over all 40 profits after 100 trades.

i think its right time to ask, what's your thought process for getting into high probablity setups. if you lets us know, i think it will benefit many of us.

 

[nil.nik.9777]

i think its right time to ask, what's your thought process for getting into high probablity setups. if you lets us know, i think it will benefit many of us.

I am not much expert but as per my experience,
High probability setups have higher success rates so these setups will also have low rewards associated i.e. have higher risk to reward ratio.

So yes, you can get into such setups as chances of winning are more provided you select correct target and stop losses as per RR

Betting higher rewards means lower risk to reward ratio e.g. 1:3 on such high probability trade will result into losses.

 

[Satya.]

b4 tking trd hw wud v knw dat it'd giv 1:1,1:2 or 1:3 @nil.nik.9777 @GENIETRADE

 

[nil.nik.9777]

b4 tking trd hw wud v knw dat it'd giv 1:1,1:2 or 1:3 @nil.nik.9777 @GENIETRADE

It depends if you are trading in the direction of trade or opposite.

E.g. if you are trading the stock which is clear uptrend and uptrend in just started then you can buy the stock and can expect 1:2 or 1:3 risk rewards.

But if stock is in the top of uptrend then you know that it will come down for small amount before going much higher, you can short at top for small down move with very high risk rewards like 1:1 or 1:0.5


These two are just examples i have seen, there are many more.
So it all depends on your risk tolerance money management and what your trade system is indicating.

 

[sanju005ind]

b4 tking trd hw wud v knw dat it'd giv 1:1,1:2 or 1:3 @nil.nik.9777 @GENIETRADE

Its all in probabilities. One can calculate the RR from your SL to targets which could be the nearest S/R levels.

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[GENIETRADE]

The only killer in the market is hesitancy to take a loss. The odds of a trade is positioned against us always and everytime. For example, you get in a position at 26000 mark and get out same at 26000, you will become poorer by some few hundreds because of the cost of the trade. We know that we need to get out of trade, if it moves against us. But somehow we donot like to close the trade when it moves against us. But by EOD, we kick ourselves for not closing the trade in predetermined stop. This is to be addressed first.

If you repeatedly fail to close the trade at SL, it is a serious problem. Whatever the justification you may give for holding a loosing trade, you are wrong.

Look at the trade position size, to assess the burden of loss in a loosing trade. If it is bigger than what you are prepared to loose, fix it immediately. Otherwise you are likely to be addicted to random rewards of the market and eventually you are likely to fail.

 

[vikas2131]

Rest of the charts :- http://www.traderji.com/community/threads/general-trading-chat.96368/page-6917#post-1289417

 

[sanju005ind]

Look how fiercely that level is being defended.

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If it closes below 10,695.The next stop is 10450.

 

[sanju005ind]

Itna Sannata kyon hai bhai.

 

[sanju005ind]

Getting out with small loss.Struggling to go up. Will wait for Europe to open and see how market reacts then.