Risks and rewards are proportionately related to each other and it is true that the higher risks you take the higher the rewards and the lower risks you take the lower  the rewards. So we should take risks accordingly in forex markets and based on our goals and investments .

The seasoned professionals know that losing is inherent in the business of trading. No trade is a "sure thing".

With this awareness, they do not hesitate to take their losses knowing that if they continue to take calculated risks, success will happen.

Originally posted by FXlord

The seasoned professionals know that losing is inherent in the business of trading. No trade is a "sure thing".

With this awareness, they do not hesitate to take their losses knowing that if they continue to take calculated risks, success will happen.

 

In forex it is not possible to eliminate the risks completely however it is much better to trade with calculative risks and a trader must try to minimize their risks and losses and make effective use of money management skills .

I think that risk reward is one of the most important parts of trading.  Trading anything 1:1 r/r over a long term is going to turn out to be a loser because of the occasions where you run into losing streaks, and because psychologically it is easier to get into a losing streak than a winning streak, you will overall lose money.  Also, if you are a fan of setting to break evento get 'free trades' after x amount of pips, you will find the market likes to whip back and take out your breakeven stop, so you end up with X amount of losers, Y amount of breakeven trades, and Z amount of winners, where Z = X-Y, which overall will mean losing your account over time.

The only way to be profitable is to have a strategy where you employ a 1.5:1, or preferably 2:1+ ratio of risk reward.  If you think that trading 1:1 is profitable, you have not been trading long enough/or backtested long enough. When you assume that only trades with a 2:1 r/r ratio are worthwhile, and figure out that 20-30 pips stops are necessary to avoid random market moves, you will soon see that there are only a few opportunities in a day where it is possible to trade a 2:1+ r/r trade.

risk in the trade is a loss. and traded forex is high risk. but to obey the rules of how to trade well and able to use a management discipline, we will be able to minimize the risk of trading and make some profit.

Limiting risk is one of the most important aspects - next to maximising profit.  Its the old adage of cutting losing trades quickly and letting profits run.  If you take this to heart (and imo, is the only way to trade, martingale, trading without stops etc is a losing strategy in the long run) then you realise that you really need a brilliant and highly selective strategy to be consistently profitable.

huge risk-huge rewards or margin call

i am scalper, so my risk is bigger then reward, 2;1 but with good MM it;s all good, and most the time i got my profit not loss

risk is always involed with any strategy

Risk is bigger than reward?  Would like to see how long you have been trading successfully.

I believe on one thing that is losses always come in the way of success i thing we must predtermin the winnign ratio for a strategy and if we are not gaining that than we must make our strategy more better with trading and research. 

The best winning ration that professional follow is 8/10 this is teh bechmark for many professional.

What do you mean by 8/10 kashifrehman.  Is that risk 8 pips for 10 pips reward?  I am more inclined to think that 2:1 to 3:1 is the only acceptable r/r.