Risk-Reward | Stocks for Breakfast
30 Day Boot Camp for Active Traders
Risk reward is a mythical number for stock traders.
Three to one is the standard. But for most traders, they're just a cliche. Most traders have zero if idea if the risk or the reward will get hit.
Believe it or not, it's your winning trades that hurt your trading account. You aren't recognizing the difference between a great idea, and one to avoid.
So you get shell shocked on the bad ideas, and then book profits too quickly on the good ones. It's a vicious cycle that shatters your confidence.
Today's trading lesson reviews how to spot the smart money, and how to stay out of trouble.
In the boot camp we have many discussions about "I work hard, when will I get profitable?" The answer is simple. It will happen when you make better decisions.
It will happen when you stop risking money on bad ideas and HOPING to get paid. Versus accepting risk on your best ideas, EXPECTING to get paid.
We review some stock charts and show you what to look for.
Pete
