We have now picked stock/stocks.
We know which strategy we are going to apply.
We already know the winning percentage of the strategy. So, it means we know what should be our minimum R/R ratio.
How to find minimum R/R ratio?
- Before we starts trading, it is important to follow our minimum R/R ratio rule. Otherwise no matter how good a strategy is, it could still give you loss. Please read- how to calculate minimum R/R ratio?
We are only going trade when R/R ratio is in our favor other wise we will not trade.
Remember- "Not trading in itself is a trading decision"
Making a trading journal is as important as making trading strategy.