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This is a trader question from the Fibonacci Trading Forum.

Martin asks:
I always try for a 2-1 ratio but because i trade the daily and 4-hour, the risk is quite high.

Neal responds:
Aah, the risk/reward ratio, one of the most frequent causes of failure! Trying to force your trading to fit an arbitrary ratio can be very difficult and very detrimental to your capital.

The market doesn’t care what your favorite ratio is. Traders must be flexible, and adjust trading decisions to accommodate a variety of conditions.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)

Filed under: 1. Risk-Reward Ratios 2:1, 3:1, etc • 2. Determine Entry & Exit Triggers • 2. Using Fibonacci For Stop Placement. • 4. Risk Control - Notes

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