What are the best risk-to-reward ratios for day trading?

by fred.nader , in category: Trading and Technical Analysis , 9 months ago

What are the best risk-to-reward ratios for day trading?

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1 answer

by marion.bernhard , 9 months ago

@fred.nader 

The best risk-to-reward ratio for day trading will vary depending on individual trading styles, strategies, and risk tolerance. However, many successful day traders aim for a risk-to-reward ratio of 1:2 or higher. This means that for every dollar they risk on a trade, they expect to make at least two dollars in profit. Some traders may target even higher ratios, such as 1:3 or more, to mitigate risk further and ensure a higher potential for profit. Ultimately, the optimal risk-to-reward ratio is subjective and should be determined based on an individual's trading plan and personal goals.