Built by Traders, for Traders

How to Protect Your Risk/Reward Ratio

Hey friend,

Let’s see how markets have been moving before we head off for the long weekend.

The Daily Direction

Note: Most indexes – except the Nasdaq – closed slightly lower yesterday. While the recovery helped trim losses, it was still a losing month for stocks.

The Daily Nugget

Stop losses are what allow you to protect your risk/reward ratios.

In trading, you always want your potential upside to be much greater than the possible downside.

That’s called having a favorable risk/reward ratio.

But without the disciplined use of stop losses, you won’t be able to manage your downside and your risk/reward ratio.

That’s why Ross Givens doesn’t make – or recommend – a single trade without a corresponding stop loss.

Do the same, and your overall trading performance will only go up.

The Traders Agency Team

P.S. As markets will be closed Monday, this newsletter will resume Tuesday. Have a fantastic weekend.

Leave a Reply

Your email address will not be published. Required fields are marked *