5. Take Profit
You’ve heard it whispered in the hallowed halls of finance, scrawled on bathroom stalls in trading firms, and probably even mumbled by your grandma if she’s secretly a forex guru: “The trend is your friend.”
And let me tell you, it’s not just a catchy little rhyme your mentor uses to sound smart. It’s the absolute, unadulterated truth. Because trying to trade against the trend is like trying to convince a toddler that broccoli is delicious: you’re going to lose, you’re going to get messy, and you’re going to end up crying into your pint of ice cream.
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰
The Golden Rule: Have a Plan Before You Enter!
No matter which method you choose, the most crucial aspect of taking profit is to define your take-profit point before you enter the trade. This prevents emotional decisions and ensures you’re trading with discipline. It’s part of your “best setup” plan!
6. Risk/Reward (rr)
Risk/Reward Ratio: The Foundation of Sustainable Profitability
The Risk/Reward Ratio is arguably the most fundamental concept in professional trading and the cornerstone of long-term profitability. It represents the relationship between the potential loss you are willing to incur on a trade (your “Risk”) and the potential profit you expect to gain from that trade (your “Reward”).
What is the Risk/Reward Ratio?
Simply put, it is the ratio of your potential profit (the distance from your entry to your Take Profit level) to your potential loss (the distance from your entry to your Stop Loss level).
Risk (R): The maximum amount of capital you are prepared to lose if the trade goes against you, defined by the distance between your entry price and your Stop Loss price.
Reward (R): The potential profit you aim to achieve, defined by the distance between your entry price and your Take Profit price.
The ratio is typically expressed as 1:X, where ‘1’ represents your unit of risk. For example, a 1:2 risk/reward ratio means for every $1 you risk, you aim to gain $2.
Calculation Example:
Entry Price: $100
Stop Loss: $99 (Risk = $1)
Take Profit: $102 (Reward = $2)
Risk/Reward Ratio: $2 (Reward) / $1 (Risk) = 1:2
Why is the Risk/Reward Ratio So Crucial?
Long-Term Profitability, Regardless of Win Rate: This is the single most powerful aspect. A favorable risk/reward ratio allows a trader to be profitable even if they don’t win every trade, or even if they win less than 50% of their trades.
Example: With a 1:2 R/R, you can win only 40% of your trades and still be profitable over a series of trades (e.g., 4 wins x 2 units = 8 units gained; 6 losses x 1 unit = 6 units lost; Net +2 units).
Objective Trade Selection: It forces traders to assess the viability of a trade setup before entry. If a trade doesn’t offer a compelling risk/reward, it should be passed over, no matter how attractive the entry signal might seem.
Disciplined Capital Management: By pre-defining both risk (via stop loss) and reward (via take profit), traders have a clear framework for managing their capital on each position, ensuring that gains outweigh losses over time.
Avoidance of “Hope Trading”: Without a pre-defined take profit and a clear risk/reward target, traders often let profitable trades run too long out of greed, or hold onto losing trades out of hope, leading to suboptimal outcomes.
Optimal Risk/Reward Ratios:
While there’s no single “magic” number, professional traders typically seek trades with a risk/reward ratio of 1:1.5, 1:2, or higher. Consistently aiming for ratios below 1:1 is generally considered detrimental to long-term profitability unless coupled with an exceptionally high win rate (which is often difficult to maintain).
Our Approach:
In our strategy, the Risk/Reward Ratio is central to every trade decision. When identifying potential swing trade setups using price action, we meticulously evaluate the following:
Logical Stop Loss Placement: Based on market structure and price action invalidation points.
Realistic Take Profit Target: Identified at key resistance/support, Fibonacci extensions, or historical price action.
Compelling Ratio: We only engage in trades where the potential reward significantly outweighs the potential risk, typically targeting a minimum of 1:2 or higher.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”
💰Professional Risk/Reward Slogans:
“Great trades begin with great risk/reward.”
“Risk small, aim big—that’s the edge.”
“Without good risk/reward, it’s just guessing.”
“Every setup needs a reason—and a reward worth the risk.”
“Risk/reward is the blueprint of every winning strategy.”
“Consistent profits come from asymmetric risk.”
“Risk management isn’t optional—it’s survival.”
“Don’t chase trades. Chase quality risk/reward.”
“If the reward isn’t worth it, skip the trade.”
“Let the math work for you—risk less, earn more.”
💰Funny Risk/Reward Slogans:
“Risk $1 to make $3… not $3 to feel something.”
“Risk/reward: Because YOLO doesn’t work in trading.”
“If your risk/reward ratio needs a prayer, it’s not a trade—it’s a wish.”
“Good risk/reward is sexy. Blowing accounts? Not so much.”
“Risk a little, win a lot—sounds better than crying over charts.”
“Why risk it all… just to gain half a sandwich?”
“Bad risk/reward trades belong in the ‘what was I thinking?’ folder.”
“The only R you want is reward, not regret.”
“Risk/reward: The adulting side of trading.”
“Trade setups without good R:R? That’s a no from me, dawg.”
💰⚖️ What is Risk/Reward Ratio?
The Risk/Reward Ratio (R:R) compares how much you’re risking on a trade versus how much you aim to gain.
Formula:
🧮 Risk/Reward = (Potential Loss) / (Potential Profit)
💰📌 Example:
You enter a trade with:
Entry Price: 1.1000
Stop Loss: 1.0950 → 50 pip risk
Take Profit: 1.1100 → 100 pip reward
Risk/Reward = 50 / 100 = 1:2
You’re risking 1 to make 2.
💰✅ Why It Matters:
🔐 Protects your capital – you don’t need to win all trades to be profitable.
🧠 Brings discipline – forces you to plan every trade.
📈 Key for long-term success – even with 40% win rate, you can be profitable if your R:R is good.
💰🎯 Common R:R Targets:
1:2 (Risk 1 to make 2) – good minimum standard.
1:3 or more – preferred by many swing traders.
1:1 – breakeven level, not ideal unless win rate is high.
💰🧠 Pro Tip:
Always match your Stop Loss and Take Profit to:
Market structure (support/resistance)
Volatility (use ATR)
Strategy logic (e.g., trend following, pullbacks, etc.)
We Wait
💰Funny Tone Slogans:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
💰
Price action is the foundation of technical trading. It refers to the movement of price over time, without relying on indicators. Here’s why it’s powerful:
🔥 The Power of Price Action:
Simplicity
Price action strips away distractions. Traders read candles, structure, and key levels directly from the chart.Real-Time Clarity
It reflects real-time decisions of buyers and sellers, showing where the market is reacting.Universal Application
Works on all timeframes and markets—forex, stocks, crypto.Identifies Key Setups
Patterns like:Pin bars
Engulfing candles
Inside bars
Break and retest
provide high-probability entries.
Institutional Footprints
Price action helps you “see” what smart money is doing—entries at key levels, liquidity grabs, false breaks, etc.No Lag
Unlike indicators, it’s immediate—based on what’s happening now, not 10 bars ago.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
💰Funny Tone Slogans:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Funny Tone Slogans:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”