Answer:

Hey there Bubba!

I think that if you are day trading, you should at least have a reward to risk ratio of 1:1. Many recommend that you have a greater one, because then you wouldn't have to have a win ratio of greater than 50% to be profitable. As for swing trading, some suggest having much higher ratios.

Also, one thing you can try is to have wider SL but have smaller units at stake. Yes, this will limit your potential profits but it can help give your trade more room to breathe.

As for you losing money despite making positive pips, I think the problem lies in that you aren't letting your profits run but you let losses hit your SL. One key thing to learn in trading is to cut your losses early. Yes, the SL is supposed to be the mark that invalidates your trade, but if you have a good feeling that you will SL, just cut your loss early and don't "hope" that prices reversing. Of course you never know what will happen, but you should be aware of the signals of when you should pull out. Also, I would suggest having two positions on a trade if possible. If you have two positions, you could close one to "ensure" your profits, while letting the other one run so that you can hit greater profits. Learning how to let your winning trades run is just as important as learning how to cut losses early.

Author: Cyclopip