Winners bigger than losers

We will not always have a winning trade and we don’t need to. The above example was a Crude Oil trade based on engaging an impulsive down move from the overnight session. We had a retest of the open of the day, along with a few other odds enhancers taught by our course, that enabled us to take a trade with a 10 tick stop ($100 per contract). The reward on this trade was 45 ticks ($450 per contract). The reward to risk ratio was 4.5 to 1x. See the outcome of this trade below:

Now, as we know, losing is part of this game. Our only job is to keep losers SMALL. If you are consistently keeping your risk as a small percentage of your account, for example 1% and your winners are at least 3 : 1x reward to risk, you will enjoy a steady account growth assuming your strategy has an edge.

If all of this risk management sounds like a foreign language to you, then we can help. It’s an integral piece to becoming a successful trader.