When it comes to trading, the most important concept that a trader needs to master is the risk/reward ratio. This ratio gives you the long term probability of success of a trading system. The first thing as a trader you need to do, when you enter a trade is to manage risk. Risk and Money Management is the most important thing for a trader. Profits come later. Novice traders ignore the importance of risk management. When they get their fingers burnt, they learn the importance of Risk and Money Management.
The most important thing in Risk and Money Management is the Risk/Reward Ratio. Don't enter a trade if the Risk/Reward is less than 1/2. You can calculate risk with the amount of money or pips you are ready to lose. This is done by using the Stop Loss.
You calculate reward by the profit you expect to make in a trade. This is calculated with the help of Fibonacci Ratios mostly. You then use a Take Profit Order to fix your reward. By dividing the pips you are willing to lose with the pips you expect to make, you calculate the Risk/Reward Ratio of a trade. Suppose, you are about to enter a trade. You have $1,000 in your trading account. This means that using a leverage of 1:100, you can trade a standard of lot of $100,000.
Now, suppose, you are willing to lose $300 in a trade. This means that you are willing to lose 30 pips as on a standard account 1 pip is equal to $10. In a trade, you must make at least 60 pips or $600 otherwise, you will just break even in the long run if you use a risk/reward of more than 1/2.
This means is that if you lose one trade, you can recover the loss in the second trade with this risk/reward ratio. Michael Lenee is an experienced forex trader with 15 years of trading the currency markets. Recently, he released his Forex Counter Attack Strategy that has an excellent risk/reward of 1/3.
What this means is that this Forex Counter Attack Trading System has 3 times more chances of winning as compared to losing. Michael was able to turn $100 into $15,455 in just 3 months. He was able to make a NET PROFIT of 15,355% in 3 months or an astounding 5118% in each month.
This whopping ROI is simply impossible if you trade stocks or other markets or even trade forex with other trading systems. Suppose, Michael has started from $1,000 instead of $100. His Forex Counter Attack System would have turned that $1,000 into $154,550 in just 3 months. Something really astounding.
The hall marks of this Forex Counter Attack System is the 3 indicators that give extremely powerful trading signals with low risk and high return characteristics. This system uses a very tight automatic stop loss that gives a fabulous Risk/Reward of 1/3. This system can be used to trade any currency pair. It can even be used to trade stocks and commodities.
It uses easy to use trading strategies that depend on 3 indicators that give extremely powerful leading mechanical signals with a minimum Risk/Reward of 1/3. It has a build in powerful money management system. Michael is willing to let you try his Forex Counter Attack System RISK FREE for 60 days. What you need to do is to test this system on your demo account and see if it does exactly as Michael says. Otherwize go for a refund.