Fear of giving back profits: what's your deal?
Watching open profit shrink feels like losing money you already had, and the fear makes traders close winners early. The psychological accounting is wrong, and the cost is real.
What's your experience?
- how you react to shrinking open profit
- the rule that keeps you in the trade
- how you reframed the give-back
The risk-reward guide shows what early closing costs in expectancy.
Background: Risk-reward ratio, win rate and expectancy: the maths behind a trading edge
A high win rate can still lose money. See how win rate and risk-reward combine into expectancy, with break-even win rates and worked examples.
What is a good risk-reward ratio in forex?
There isn't one right ratio. What matters is expectancy, the win rate and ratio together. A 1:2 ratio breaks even at about 33% winners before costs, while a 1:1 ratio needs 50%.
How do you calculate trading expectancy?
Multiply the win rate by the average win and subtract the loss rate multiplied by the average loss. Measuring wins and losses in multiples of the amount risked (R) makes the result easy to compare.
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