The High Risk Reward Trader

The high risk reward trader is a trader that needs to be really mentally strong.

This trader takes trades that have rewards with payoffs of 2/1 as a minimum, and normally a lot more.

Whilst aiming and trading for these larger reward targets, this trader needs to be mentally prepared to take on the losses that will come while waiting for the big winners that make them profitable.

This trade management method of looking for a higher risk reward target can involve big losing streaks. You need to be really aware of this if this is the route you are choosing.

This trade management method can make solid profits as long as the trading edge and method being used are given a large number of trades to play out. A HUGE mistake a lot of traders make all too often is jumping ship because they lose a couple of trades and they lose faith in their method/edge.

“It is even more important if using this trade management to give yourself a large number of trades so your edge can play out.”

You need to practice this method on your New York close demo account so you know exactly what you are in for, are 100% confident in what you are doing and have crushed any potential doubts.

To make sure you are never over-risking on your account and always in a great place to take advantage of trades so you can cash in when the time is right, make sure you think about the money management method you plan to use with your edge and method.

Read the trading lesson at; Start Using a Forex Money Management Method That Actually Works that discusses the different options you have on money management strategies.

The High Win Rate Trader

The high win rate trader is the one who is consistently filling up their trading bank balance with regular wins and profits.

Rafael Nadal is an awesome tennis player, but the reason he is so good and especially at the French Open is because he plays high probability tennis. One example If you ever get a chance to watch him play live is that he hits his rallying shots i,e forehand/backhand so much higher over the net.

He uses a massive amount of topspin that whips the ball high up over the net and in the process takes out a major element of losing point; hitting the ball into the net.

The high win rate trader is looking to use a similar mindset in that they are not looking for the big winners, but the high probability play with a safer margins. This trader doesn’t mind that they are not regularly bagging huge running winners, but instead are looking for consistent profits.

After taking on too many losing streaks in pursuit of the large winner, this trader gave up the chase and instead looked for something that would produce something a lot more regularly, with many fewer losses.

You need to be super watchful over your overall account risk reward. It can be easy to forget and not realise when you are making a lot of winning trades that you are making either a lot of careless trade management errors, or that your account risk reward situation is not great.

At the end of the month and year profits have to be made. It is no good regularly taking consistent profits if they are often being wiped out by losses. This is why you need to always be mindful of your overall account risk reward.

At the end of the month and year profits have to be made.

That is why it can also help to try to ‘CASH IN’, so to speak, on the bigger risk reward trades when you find the high probability plays. This gives your overall account a big risk reward and profit boost from time to time.

It is critical you practice on your New York close demo account how to take full advantage of your big winners when they come and still regularly take the smaller profits.

Lastly; make sure you are never over-risking on your account and always in a great place to take advantage of trades. Your money management method is super important and needs to align with your strategy and plan.

Read the trading lesson at; Start Using a Forex Money Management Method That Actually Works that discusses the different options you have on money management strategies.