THE Order Block

Free course · Lesson 14 of 14

Why losing trades are fine

You can lose most trades and still come out ahead.

Trade12345678910Total
Result−1−1+3−1−1+3−1−1+3+3+6R
Why losing trades are fine: the finished chart from the lesson. Watch it play step by step.

Step by step

  1. Every losing trade costs 1R, because the stop is fixed. Every winning trade makes 3R, because the target is three times the risk.
  2. Take ten trades: six lose and four win. Six losses is −6R. Four wins is +12R.
  3. You were wrong more often than right, and you are still up 6R.
  4. That only works if every loss really is 1R: no moving the stop, no doubling up to win it back.

Remember: With 1:3 trades you can lose most of them and still come out ahead. Keep every loss at 1R and let the winners reach their target.