Ratios are the key to profitability

Most traders get stuck at break even.

Gaining and losing money without making profit.

I'll show you how to break that loop and finally cross the line to profitability.

The main reason most traders can't become profitable, aside from psychological readiness, is ratios.

It's not just the size of the trade,

But also where the stop loss and take profit should go.

I already talked about the market makers entering a trade where most people put their stop loss.

That's part of it.

The key is matching your ratios with the right levels.

You may know where the stop loss and take profit should be,

But if the ratio is too small or inconsistent your strategy will never work.

That's why so many traders struggle to become profitable.

While everyone is focused on where the levels are.

Very few people look at the ratio between the levels.

The lower your ratio the higher your win rate needs to be.

The higher the ratio the more profitable you are even with higher losses.

It's simple math.

1:1 you break even at a 50% win rate. 3:1 30%.

Everything below is a loss,

Everything above is a win.

Match that with your position ratio and you know what you're doing.

Click here for a simpler explanation