4. Risk Management Strategies

Different Types of Strategy Returns

  • To successfully generate solid returns, you need to win more than you lose, or gain more on winning trades than you lose on unsuccessful trades.
  • If your wins more than it loses, the amount you win could be either equal to or slightly less than the amount you lose.
  • Alternatively, if the strategy you plan to employ will have more losers than winners, than the amount that you gain on winning trades needs to be more than the amount you lose on unsuccessful trades.

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