Riskless Reward

Hello everyone,

So I had another breakthrough in my trading strategy, I finally realized what Tony Robbins was saying in his book Money, "Asymmetrical Risk/Reward"

They believe inasymmetrical risk reward. It simply means they take the smallest risk possible for the largest return possible.

If he invests a dollar, he doesn’t part with that dollar he’s investing unless he feels certain he’s going to make five

He knows — he’s not stupid — he knows he’s going to be wrong [sometimes] so if he loses a dollar and has to spend another dollar, spending two to make five, he’s still up $3. He can be wrong four out of five times and still be in great shape.

Most everybody thinks that if I want to get big rewards I need to take huge risks. But if you keep thinking that, you’re gonna be broke.”

That's from here:

https://www.linkedin.com/pulse/20141122203831-38691208-tony-robbins-on-asymmetrical-risk-reward

So what you need to do is set stop losses. Just yesterday I risked $0.15 to make $1.00, there's huge asymmetrical risk reward there. if the stock would have hit $0.395 the stoploss would have kicked in and sold my shares. If it would have hit $0.42 i would have made my dollar.

So that's the key, you can be wrong 2 or 3 times and still profit in the long run.

Chris