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Good Morning Pisces

Good Morning,

First calculate the win which is : 4 winning trade X $60 = 240. Then the loss which is 6 losing trades X $40 =120

Therefore, 240-120 =120

Let's solve word problems concerning trading

Question 1:

You enter a trade with a 1:3 risk-to-reward ratio.

Your risk = $20

Your potential reward = $60

If you take 10 trades and win only 4, while losing 6, what is your total profit/loss?

A. +$120

B. +$60

C. −$60

D. $0

I saw this somewhere

Definitely $20

Well

The journey has been wonderful so far

Omo I don't understand again ooh

Let's solve word problems concerning trading

Question 1:

You enter a trade with a 1:3 risk-to-reward ratio.

Your risk = $20

Your potential reward = $60

If you take 10 trades and win only 4, while losing 6, what is your total profit/loss?

A. +$120

B. +$60

C. −$60

D. $0

I saw this somewhere

Question 2

You have a trading account of $1,000 and decide to risk 2% per trade.

How much are you risking on each trade?

A. $2

B. $20

C. $50

D. $200

Who can solve this?

Let's solve word problems concerning trading

Question 1:

You enter a trade with a 1:3 risk-to-reward ratio.

Your risk = $20

Your potential reward = $60

If you take 10 trades and win only 4, while losing 6, what is your total profit/loss?

A. +$120

B. +$60

C. −$60

D. $0

I saw this somewhere

Let's solve word problems concerning trading

Question 1:

You enter a trade with a 1:3 risk-to-reward ratio.

Your risk = $20

Your potential reward = $60

If you take 10 trades and win only 4, while losing 6, what is your total profit/loss?

A. +$120

B. +$60

C. −$60

D. $0

I saw this somewhere

Question 2

You have a trading account of $1,000 and decide to risk 2% per trade.

How much are you risking on each trade?

A. $2

B. $20

C. $50

D. $200

Who can solve this?

Good day, we start off be checking the winnings

$60 X 4 =$240

Then the losses are 6 X $20 which equals $120,

When you minus 120 from 240, it gives you 120.

So A which is $120 is the answer

Omo I don't understand again ooh

Let's break it down step by step 👇

Given:

- Risk per trade = $20

- Reward per trade = $60

- Risk:Reward = 1:3 ✓

- Total trades = 10

- Wins = 4

- Losses = 6

Step 1: Calculate total profit from wins

4 wins × $60 reward = +$240

Step 2: Calculate total loss from losses

6 losses × $20 risk = −$120

Step 3: Total P/L

$240 profit - $120 loss = +$120

Answer: A. +$120

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Key lesson:

You can have a 40% win rate and still be profitable because your winners are 3x bigger than your losers.

That's why R:R matters more than win rate.

This one is straightforward 😊

Given:

- Account size = $1,000

- Risk per trade = 2%

Calculation:

2% of $1,000 = 0.02 × 1000 = $20

Answer: B. $20

Got you let’s solve it with the "Net per trade" method instead

Method 2: Average outcome per trade

Step 1: Find net result for 1 win and 1 loss together

1 win = +$60

1 loss = -$20

Net for a win+loss pair = $60 - $20 = +$40

Step 2: See how many win+loss pairs we have

We have 4 wins and 6 losses.

We can make 4 full pairs of win+loss = 4 × $40 = +$160

Step 3: Account for the extra losses

We used 4 wins + 4 losses in the pairs.

That leaves 2 extra losses: 2 × -$20 = -$40

Step 4: Total P/L

$160 - $40 = *+$120

Answer: A. +$120

[Bonus way traders use]

Expectancy = (WinRate × Avg Win) - (LossRate × Avg Loss)

WinRate = 4/10 = 40% = 0.4

LossRate = 6/10 = 60% = 0.6

Expectancy = (0.4 × $60) - (0.6 × $20)

= $24 - $12 = $12 per trade

For 10 trades: $12 × 10 = +$120

To find X% of a number, just move the decimal.

Step 1: 1% of $1,000

Move decimal 2 places left → $1,000 → $10

Step 2: We need 2%

So just double 1%

$10 × 2 = $20

Answer: B. $20

It’s been so long.