Title: Why Risk Reward Ratios Don’t Work and What You Should Do Instead
Date: November 18, 2014
Presenter: Erich Senft
If you have been around trading any time at all, you have likely come across the concept of Risk Reward Ratios for judging the validity of a trade, but do they work? Not according to Erich Senft, a CTA with TradersHelpingTraders.com who maintains that not only do they not work, but they can be downright detrimental to your success as a trader!
Erich maintains that Risk Reward Ratios are one of those self-perpetuating myths that sound good on the surface, but do not work as well in real life.
To find out what does work, join Erich for this live webinar as he discusses the following topics:
- The danger of using Risk Reward ratios
- How Risk Reward Ratios can actually lead you into taking a bad trade
- Why Risk Reward Ratios are a poor judge of trade quality and what you should be using
- How professional traders use Risk Reward Ratios (it’s not the way most traders do!)
- What you should be doing to give yourself an “edge”
Erich Senft, has been actively involved in the Futures markets for 15 years. He is a registered CTA and the main man behind TradersHelpingTraders.com and SupportandResistance.com. He is recognized by many as an expert in the field of support and resistance trading.
This website is for educational purposes only. Futures, options, and spot currency trading have large potential risk and traders should be well-educated before putting real money at risk. You must be aware of the risks and willing to accept them in order to invest in all markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to buy/sell a futures contract or currency.