Why do most people suffer losses while trading in the market?
Risk Reward Ratio
Most of the people concentrate only on the profit generated on every trade,but it is important to understand the concept of risk involved. Risk is the amount of money which you are going to lose if the trade goes wrong. So a good trade should have risk reward ratio of atleast 1:2
For eg.You enter nifty buy at 8600 with stoploss of 8580(risk taken 20 points).Then your profit target should be atleast 8640(reward of atleast 40 points)
We at returnwealth provide algorithmic trading services to clients such as working professionals, HNI’s, retail investors who donot have much time to spend before the live markets.The risk reward ratio of our algorithm is 1:4 with an average returns of 70% on yearly basis.