 Hey guys and welcome to yet another amazing video from your truly dapper will is now guys in this video I'm gonna be speaking about the truth behind the risk to reward How much should you be risking, you know trade management and all that kind of stuff? How much do I risk and you know the best risks management strategy for you guys to be using? Um, I'm not gonna be going into the mathematical details of things today But I you know, I it's more of this psychological approach to risk to reward Is it really realistic to be making three to one on every single trade, you know stuff like that So I'm from experience. I'm gonna be speaking to this. So guys don't go anywhere stick around to the very end of this video And yeah, let's go Hey guys and welcome back to my youtube channel is yours truly dapper well It's not guys before I get into the nitty gritty of this video I need you one thing or one thing only which is hit that subscribe button right there and drop me a like This is very crucial for the channel because I think as at the time I'm recording this video. We're just about 5,000 subscribers So it's 5,000 people, you know subscribe to this channel. Absolutely amazing I will I I think when we get to 10k I'm probably not slightly gonna do a giveaway to you guys because you guys have been Absolutely fantastic from zero subs now at 5k and hopefully before the end of this year We get to 10,000 subscribers now guys like I said in this video today. I want to discuss I Want to discuss about the truth behind risk to reward, you know, what how much should you be risking per trade and stuff like that So the first question I always get is high dabs between Three to five percent how much Should I be risking? Okay? My account size is let's say $1,000 out of $1,000. How much should I be risking? Well, you know, what's my risk world because? You find out that some traders don't really have that much money in their trading account to trade with So if you ask them to risk three percent of the account That's barely $30 and if they're making maybe I don't know a two-to-one risk to reward whereby they're making only $60 per trade. They're like, you know, this isn't significant enough. So To be honest risk management is very relative if I'm being very honest I will be a hypocrite to sit here and tell you guys to risk only 3% of your account when I know fully Well that some of you guys only have a hundred dollars in your trading account. It's ridiculous So risk management is relative personally. I'm I'm massive millions. Okay millions of US dollars So I can get away with risking 3% or even 1% because a 3% of a million dollars is $30,000 If I make the three-to-one on that not your little three point factor that on on return on that trade I'm looking at about a hundred thousand dollars on a single trade And that's fine But for people who have a $1,000 account or a $500 account if you ask them to risk 3% That's $15 and at the end of the day they've only probably made about $50 on the trade What is $50 going to do for the average human being? Nothing regardless of what part of the world you're living in So this is why I keep saying risk management and risk to reward is relative now that being said if you have a small account size You're permitted to go all the way up to 15% per trade. Okay. I don't think anything more than 15% per trade is ideal You know once you get to 20% why I'm saying this is if you have a small account size It's a lot more difficult for you to grow your account. So you might want to increase your stake However, there's a downside to that and the downside is think about it guys If you're risking 20% of your account on every trade you place and you only have let's say $1,000 in your trading account That's $200 you're risking per trade Now what this simply means is that if you have five losing trades your account is gone Okay Your account is gone and yeah, so if you have a small account size This is a risk you have to take into consideration. Do I you know? I want to grow this account fast, right? So you have to have at the back of your mind like I only have five lives Five lives, however, if you have a bigger account size, so from $10,000 and above Please that the bigger your account size is the The smaller your risk profile should be because you have a lot more at stake. You don't want to blow that money You see guys with smaller account sizes They have something to lose but not that much. Okay, and you have to understand that They're trying to level up. They're trying to quickly grow their account up to the point whereby they have a significant amount of capital in their trading account So they are permitted Okay, small account holders are permitted to increase their risk profile so that they can quickly grow that 1k to 5k So that they can now relax and be like, okay Now is time for me to obviously implore the best risk management strategies. Okay So like I keep saying what risk should we be using for your trading? It is relative for $10,000 account size It's 3% to make 10% is fantastic. This is what you should be doing If you have below 1k, you're free to go all the way up to 15 to 20 percent However, always remember that there's a downside to things and if you want to embark on this shoot ensure Before you even start trading, this is for 1k guys 1k and below before you start trading ensure that the market is trending Okay, the market is trending because if you go ahead and you want to risk 20 percent per trade In a ranging market And then the market is not exactly cooperating. You're most likely going to hit more losing trades than winning trades Okay, and you know Once you hit a couple of losing trades and you've probably lost about 40 to 60 percent of your account Emotions coming to play and then what's happening? The account is gone. So first things first you want to first of all ensure that You grab the forex mastery program, of course to make sure you're educated You're grounded your skill set is sharp And then secondly you want to ensure that you're trading in the direction of the trend in the area of less resistance If the market is giving you Scenarios that you don't understand, please stay away You have to understand that you only have five lives only have five lives So you want to make sure that the the trade setups are clear Even the baby can understand it. You want to ensure that you know Everything is smooth man. You want to show like everything is smooth before you start You know risking that amount of money now back to the 10k guys 3 percent to make 10 percent is absolutely fine. This is this is my risk profile 3 percent to make what 10 percent now guys realistically Now this is in terms of risk to reward So you hear me always talk about a risk 3 percent to make 10 percent Is this always the case? It's not always the case Realistically, it's not always the case when you go for all your trading seminars and you know, you hear all these gurus speak They tell you all if I just risk 3 percent to make 10 percent or if I just for every 3 percent because if I make 3 percent to make 10 percent if I have two winning trades It's going to cancel out all my fall losing trades and blah blah blah guys The honest truth about risk to reward is not every trade is going to give you That 3 to 1 so Let me what exactly is even this risk to reward. I've been talking about it's simple You want trades whereby if I stick 300 dollars that trade she would give me back $1,000 if I risk $300 it should give me back $1,000 if I risk $30 she give me back what 100 dollars Okay, this is so 3 to 1 Okay, if I risk 30 it should give me back 90 if I risk 300 she give me back 900, right? So this is the 3 to 1 that I keep talking about just multiply how much you're risking by 3 if it's a 4 to 1 Multiply how much you're risking by 4. So this is exactly the end of ideology behind things. So Ideally the average forex trade you get into is ideally supposed to give you a 3 to 1 whereby if you risk $3,000 I should be able to make back $9,000 if I risk 300 should be able to make 900 if I risk 30 should be able to make back 90 however Guys, this only happens 3 out of 10 times that's the realistic truth Only happens 3 out of 10 times most of the time 7 out of 10 times you would realize that listen bra Somewhere along the line during the trade one idiot is speaking on the news and then the market just turns around Or one resistance or support that you did not see Is hanging right there or one trend line from Freaking 1994 is coming all the way down that you did not see before and then the market gets Right in the middle of your trade and then just starts to turn around So this actually happens 7 out of 10 times What do you do now? This issue was affecting me negatively for many years during my trading career. Okay So I had to devise a strategy to combat this and what I did was this right? I said to myself I said, okay If I get into a trade, I'm risking for instance $300. Okay, and The market goes in my favor and gets to a certain point Usually the hundred percent retracement now guys I speak about a lot of this in detail on the forex mastery course If you haven't gotten it, the link is going to be down below I ensure to get it because all of these things I'm saying on my youtube channel will make a lot more sense And obviously you help your profitability overall. So back to what I was saying You know, I said to myself, okay, I'm risking $300 to make $900, right? um, however Things don't always pan out that way So I said to myself, okay cool I'm going to develop my strategy in such a way whereby Once the market gets to the hundred percent retracement I am going to bank in some profit. So let's say I have one lot open Once we get to a certain point of my trade, I will close out half, which is 0.5 lots And I will move my stop losses from where they were Slightly past break even This way I have been able to bank a certain amount of money now What tends to happen is two things from here. So let's say, you know, we buy here our expectation is here However, by the time we get here, I have already taken out the certain portion of my trade We still have all the way, you know here to go Now when we get here two things can happen It's either we proceed all the way to the overall target or the market will turn around and come back down So like I said, what I did was once the market gets here I take out half of my position and I move my stop loss that is here all the way to break even So that whatever the market wants to do from here, if it goes higher, that's fine more money for me If it comes back down What's happening? What's going to happen is I'm going to get stopped out for break even Now guys, I found out that this, you know, was the best approach. I found out that for every profit I make Or for every trade that goes in my direction You know I'm never giving the market back that much money or The last thing I want is for the market to go in my favor And then the market goes back into my entry and then stops me out as a trader It is forbidden for the market to go in your favor and still turn around and get you stopped out It is an abomination. Okay, so You know at the 100% retracement, I take I close out 50% of my position now back to What I was saying in terms of is it realistic for us to always hit the three to one now because I have done this I would obviously I have closed out a certain portion of my trade. So I wouldn't be getting my full 10% my full 3% to make 10% Because I have closed out a certain portion of my trade. So my trade is actually half So what is going to go from that middle point all the way to the take profit? Is not going to be the same as if I left the whole trade open I'll take it again If I'm taking one lot all the way to the upside my overall target I would have made 10% But because of the fact that we got to a certain point and I closed out a portion of my trade The remaining trade that went to the overall target is obviously not going to be as much Okay, it's not going to be as much now Traders feel that by doing this they make less money. Yes, you Will make less money. You might make less money However, this is I call it a circuit breaker. It is there to save you from yourself Because you find out that in those trades The market doesn't actually get to your Profit level your overall dream profit level area It never get almost never gets there 7 out of 10 times. It will never get there So this measure that I put in place is to ensure that Yes, I might not take the whole 3 to 1 home. I might not take the whole 10% home I might not take the whole, you know, risk $300 to make $1,000 Make $300 to make $900 back. Yes, I might not make that $900 back However, first of all, I have protected my $300 bam And I have most likely made another $300 bam. Why because I've closed out a certain portion of my trade and I'm just chilling So At the end of the day, you might find out that What you actually made was not a three to one. You might have made maybe a Two to one or a two and a half to one or a 1.8 to one Whereby you risk $300 and you've only been able to make back $500 Now I like I said, I know everybody wants to go for the long haul. However, don't forget guys Not only have you protected your capital, you have gone and you've extracted money from the market And we've put it guys in this game. You have to be content Oh guys, the content traders are the ones that have been trading for 10 15 20 years Those are the people that forex puts money on their table Guys the people who are greedy Are the people who the market keeps chopping up and spitting out You have to be content You if you don't have enough capital either you quickly scale what you have Or you look for an investor because you have to be content those dreams of three to one Go and check my trailer talk Tuesdays. Do you find out that? Only maybe three out of 10 trades that we predicted actually won the whole journey Seven out of 10 of them somewhere along the line started to reverse And I always say once we get to the 100% retracement bank something why because 60% of the time the market is ranging You would only get those Massive $300 to make 900 or 300 dollars to make 1k during trending periods and the market only trends 40% of the time Yes in those times, you know, we stretch the whole trade and we make what we have we make what we can however Because the market Hardly ever does that it only does that 40% of the time That means most of the time we're going to have to take what we get And I'll spend a lot of time on this video But i'm trying to you know put some perspective as to why the market, you know Setting unrealistic expectations is always detrimental to your trading the truth behind the risk to reward trading You can go for the three to one. That's fine However Guys, you might almost never get there. You only get there three or four Let's say four out of 10 times the remaining six times Somewhere along the line is going to spin around so add Some spice to your strategy that will enable you bank something When it gets to a certain point my own spices once it gets to the 100% retracement I bank some profit and I speak about this extensively on the forex mastery program So guys, I hope I've been able to shed some light on first of all what a risk to reward is okay Risking what's your risk multiplied by in the x value? Let's say you're risking three hundred dollars on your risk to reward is three to one just multiply three by that Okay, so that's what risk to reward is What is the how realistic is a three to one risk to reward might happen four out of ten times What should you do? Like I say, I always take out some of my position like the hundred percent retracement So yes guys, you know I'm a realistic guy I'm gonna come on here and tell you guys the truth behind things like, you know, it's not Forex trading is not the easiest thing to do. I know that for a fact And yeah, I'm the last person who's gonna come on here and be selling you guys dreams However, it is absolutely rewarding You can make a lot of money from it. It's all about knowing Ex the hack behind the market The hack behind the market and guys before I go The forex mastery program will teach you A very important skill How to and how to analyze from a higher time frame and see massive moves into the future this way When you get into those trades that are not exactly doing so well that are just, you know, you know End up banking the three to one Those massive big time frame perspectives will be able to give you a guide as to the overall perspective of the market So what does this do for you? Truly, it gives you confidence for you to understand that eventually This market is actually going to go ahead for a 2000 pip move So at the moment the market is just acting mad So I'm going to take what I can take for when the market is ready I have 2000 pips waiting for me All I need to do is grab what I can grab and just be stacking up stacking up stacking up 3% 2% 5% 8% 12% stack stack stack stack stack and then when the big flood comes Guys, you know we can go swimming. So guys, I hope I've been able to shed light on this topic Once again, don't forget to drop me a like subscribe I know this video was long But I had to take my time to explain this whole concept of risk to reward I know it's not exactly the most beginner friendly risk to reward But I don't expect most of you guys to be beginners anyways I expect you guys to be intermediates struggling traders because most I Feel like most traders are actually not brand new. They're actually struggling And I think that's my target audience to speak to struggling traders because guys I struggled for three whole years. It was not funny So guys, if you haven't grabbed the forex mastery program, I encourage you guys to do so It contains nine years worth of trading experience and all these goodies I keep talking about And all this experience I put it together in the program Fantastic nine nine module course. It will absolutely change your training. All right guys I'll catch you guys in subsequent videos This is my time. Take it easy and peace out