What's Risk Reward?

What's Money Management?

Best way to practice equity management in xauusd is for a trader to use How Do You Calculate Risk Reward? - How to Calculate Risk Reward and keep losses lower than the profits they make in gold. This is called risk reward ratio.

What's Gold Risk Reward?

This xauusd trading equity management method is one of the How Do You Calculate Risk Reward? - How to Calculate Risk Reward used to increase the profitability of a system by trading only when you as a trader have the potential to make more than Three times what you're risking - What's Risk-Reward? - What is Risk Reward?

If you trade using a high risk: reward ratio of 3:1 or even more, you significantly increase chances of becoming profitable in the long run when xauusd. The Chart below shows you how: How Do You Calculate Risk Reward? - How to Calculate Risk Reward

What is Risk-Reward? - What is Gold Risk-Reward? - What is Money Management?

In the first examples, you can see that even if you only won 50 % of your trades in your trading account, you would still make profit of $10,000 - What is Risk Reward?

Even if your win rate went lower to about 30% you would still end up profitable - What is Risk-Reward? - What is Money Management?

What is Money Management? - Just remember that whenever you have a good risk reward ratio trade equity management plan, your chances of being profitable as a trader are greater even if you have a lower win percent for your xauusd strategy.

Never use a risk:reward ratio where you can lose more money on one trade than you plan to make. It doesn't make sense to risk $100 in order to make only $10 when trading xauusd.

Because you have to win 10 times so as to make the $100 capital back. If you ONLY lose once in your xauusd then you as a trader have to give back all your profits.

This type of strategy makes no sense & you'll lose on the longterm if you use a system like this - that's why you need Better XAUUSD: Risk Reward Equity Management Plan.