- Some call it crazy, others call it a low-probability, high reward vs. risk trade
- The logic? This is an idea based on an opinion of a higher timeframe premise, going for that higher timeframe take profit target, and setting a lower timeframe stop loss. But both have got sound, technical reasons, not random ones
- Watch the video below for a trade idea for a leveraged trade idea on Ethereum (ETHUSD), based on that crazy logic.
Trade Ethereum at your own risk.
- Investing revolves on risk and reward. Investors that hold hazardous assets and risk losing money should be rewarded more richly. More risk equals more possible profit for an investment
- Risk and return are tightly correlated for most investments and asset classes. Every investor must balance risk and reward. Typically, when going for a high return vs risk, like shown in the ETHUSD trade idea in the above video, based on that technical analysis shown, traders pay a „price“ regarding the probablity of the trade to work out in their favor: The higher the reward, the lower the probability to win the trade. Still, some traders may want to aim for those big trades, accordng to their personality and strategy. The above shows an example.
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This article was written by ForexLive at www.forexlive.com.
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