Yesterday's Podcast - Risk to Reward Ratios · Day Trading for Beginners

Yesterday's Podcast - Risk to Reward Ratios

Yesterday's podcast was about win rates and risk to reward ratios for day traders. I remember hearing about these when I first started researching day trading, and I recently came across them again.

The podcast and article go into detail about them. Check out the resources here:

Read the full article.

Listen to the podcast here.

As a beginner, it will take a bunch of trades in your paper trading account and journal to gather enough good data. This is why a trading journal is so important. So it's not something a beginner can track or is expected know right away IMO, but it's certainly something to be aware of and start to track as you start trading more and more. Before you trade with real money, you should have a reasonable win rate - again this seems so obvious, but everyone wants to trade real money right away...

Overtime you should know these rates and ratios, and you'll be able to get a sense of the probabilities and risks associated with various trade set ups.

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