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RE: The formula for success (it's literally a formula...)
rewards must always be bigger than the risk is what I am understanding. Is this correct?
I had been trading in my past life and lost many times my life savings so trying to avoid a repeat with crypto trading. Learning everyday. Thanks.
Not necessarily... If your reward is less than your risk, then you just need to win more often than lose (as per the formula).
If you look at the last example, a winning trade = +$10 and a losing trade = -$25. But... if you can win 75% of the time, then you will make money. That's why the 'formula' is so important.