diablopiyush

Its Risk/Reward ratio, assuming you don't know about it at all, its one of the simple money management techniques, that helps in filtering away trades that have more risk and less returns. Having Risk/Reward calculated before entering the trade itself, helps me ascertain the maximum risk I'm willing to take for the potential reward. Typically my Risk/Reward is 2:1 to 4:1. Hope it helped, Google it for more info... PS: are you trading on leading indicators alone?

I used to assume things out of anxiousness and entered positions just before the break of critical levels, hoping price will do what i expect, and most of the time, price went in the other direction. I also never used to calculate Risk/Reward ratio. Now i wait, for critical levels to break, calculate R-R ratio, I don't get anxious, and now I do what price expects me to do. If at all i get euphoric, i exit the market. Basically you have to be emotionless while trading, and learning to be in that state took most of the time and energy. Good luck