“ The primary goal of a trading strategy is to improve the risk-reward ratio.”
The Hong Kong stock index opened higher today, with the morning session $Hang Seng Index (800000.HK)$ closing up by 1.18%. $Hang Seng TECH Index (800700.HK)$ Closed up 1%. $FTSE China A50 Index (.FTXIN9.CN)$ Closed up 1.46%,
China concept stocks $JD-SW (09618.HK)$ Morning session closed up 3.92%, $TENCENT (00700.HK)$ Rose 1.35%; $PETROCHINA (00857.HK)$ Rose 2.93%; $XIAOMI-W (01810.HK)$ Closed up 1.96%;
In the previous post, it was shared that in the reality where the trading success rate does not differ much,The real difference in ability between winners and losers in the investment market lies in profit/loss ratios and position control.
Therefore, ourThe primary goal of our trading strategy is to improve the risk-reward ratio, that is, to make the profit when predicting the market correctly greater than the loss when predicting incorrectly.
To achieve this goal, it requires investors toWhen trading, choose to operate at important price levels.Only participate in opportunities where you truly have a high risk-reward ratio.
Generally, it is only worthwhile to enter a trade if the expected risk-reward ratio is greater than 3...