Trading notes for 7/17
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DUFU Stop-loss at 2.59, actual loss of -0.1R Bought in yesterday. $CENSOF (5195.MY)$ Gap up in early trading, with long lower shadow in afternoon trading. Already reached 1R, move the stop loss to the buy-in price.
$BMGREEN (0168.MY)$ Reached 3R, take profit at 60%. Remaining holding for the medium to long term.
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103477208 : I'm a newbie, what are the 3R's? What does R mean
JjTern 103477208 : “R” is a standardized unit for assessing the reward and risk of trading strategies and trades. It allows for strategy and trade comparison regardless of risk tolerance, account size, or time frame
In short it is relative to the investors account and balance. It's not something of an absolute amount.
小资本投投 OP : Thanks for replying to me, I ignored it.
R is the risk you can bear.
For example, you are risking 5% per trade.
Your 1R is 5%.
If you want long-term profit, the profit and loss ratio should be at least 1:2 R. That's 10%.
However, your profit and loss ratio can be adjusted depending on your long-term win rate.
The figure below is for reference.