A really great profit target not only creates a great reward-to-risk ratio, but also has a good chance of being reached. It is a balancing act between maximizing the return, while giving the market a reasonable chance of hitting that target (within a reasonable amount of time--this will vary by trader's timeframe). In this video I show how I maximize returns, to create trades with 8:1, 13:1 and even 20:1 reward to risk ratios based on market structure. That means that even though we are making a huge return, the market has shown a tendency to reach these sorts of targets, and there is a good chance it can do it again. The market provides these types of opportunities many times each month, so they are not rare. Even if you win only 1 or 2 trades out of 10, you can make huge returns by maximizing your reward:risk with this approach. If you are placing good entries, reading price action well, setting your targets at good levels (based on the structures playing out) you can potentially push that win rate up to 4, 5 or 6 winning trades out of 10. And when you are making 10% on winners and only losing 1% on losers (that's account value, it doesn't really have anything to do with the percentage movements of the forex pair) the gains pile up fast. It's important to watch the other videos in the Forex Swing Trading in 20 Minutes video series to see the entry and risk management methods that work well with this profit target strategy. Forex Swing Trading in 20 Minutes - Pairs to Follow and Setting Up Charts: https://www.youtube.com/watch?v=lwZEACzahec Forex Swing Trade in 20 Minutes - Time Frames and Trend Trading Strategy https://www.youtube.com/watch?v=WWvwvigX8eM Forex Swing Trading in 20 Minutes - Crotch Strategy and Strong Support and Resistance: https://youtu.be/LbdfQDN4-WI Forex Swing Trading in 20 Minutes - Position Size and Risk Management: https://www.youtube.com/watch?v=DbTWhEwHz_I As always, find out more at my website: https://vantagepointtrading.com/ and in my Forex Strategy Guide eBook: https://vantagepointtrading.com/forex-day-trading-and-swing-trading-strategy-guide
Visibility: 1711
Duration: 31m 55s
Rating: 18