Interview with Trader James Booth: Is it Better to Use High Risk Reward or High Win Rate?

Charlie Burton interviews independent trader James Booth on his day trading. PLEASE LIKE AND SHARE so we can bring you more! We are talking about win rates and profitability. If you are a private trader who likes winning trades - and who doesn't like winning trades? But the problem is that too often we end up closing winning trades early - we don't want to be in profit and end up getting stopped out at a loss and that's why we like to move trades to breakeven asap. Allow trades space for breathing, don't move trades to breakeven too early. Statistically, if I lose more than I win but my risk reward ratio is 4:1 I can still make money. We like being in profit and hate losses.

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[@Samw8484]

I find a 1-1 RR is more profitable for me its each to their own. When I was going for 1-3 i was getting in profit a lot then ended up losing the trade so went down to a 1-1 and now have a 70% win rate which is very profitable for me.

[@markspacetv]

Imagine waiting for 3 weeks for a 100pips loss.

[@artpena72]

the key to all this is patience, it is the hardest part for me, learning to wait takes discipline

[@VicDamoneJr82]

sounds like he failed at being a day trader

[@PipBiz1]

Win rate ie accuracy matters the most. R:R doesn’t matter as long as I’m concerned. I use 1:1.5 for all my trades and it has 90% win rate for me.

[@shaun9286]

Those who think high risk to reward is profitable. Your going to blow your account. The right way to trade is. A strategy with 80% win rate and 1:1 risk reward

[@EPTRotorsports]

I use a very high win rate. I trade no more than 20% of my account balance and only look for a 2% return per trade. Sometimes I get more, some times I get less. But I am usually in a trade for less than 20 minutes. I usually only trade once per day....so I am barely in front of the computer. This is the most successful I have ever been. More than a 90% success rate. From June 1st to today June 9th I'm up 18%, typically I'll I'll end the month up about 60%.....higher balance larger position size but the strategy doesnt change.

[@sophiepunzalan]

At 3:1 ratio, even if your Win Rate is just 40%, you could already yield a fortune!! :D

[@janieart]

Every time I “let the market breath” I lose my butt.

[@bagholderwithaplan]

I personally can't trade a system with a risk to reward ratio more than 2 to 1. I can barely follow a system with a 2 to 1 ratio. I can't handle the series of losses for that occasional 3-4R. I tried it and it just doesn't fit my personality. I'm more of a scalper. My hope however is that I learn to let the market breath once I gain more experience and trust in the whole trading process. For now, I'm just not there yet

[@varentou5993]

Lmao he went frrom being a day trader to having a full time job and swing trading. He failed at day trading, absolutely. A decent day trader could EASILY make 500-1000 a day and most jobs wont pay that kind of salary. Why is he being interviewed lol

[@sabdorc]

Truth be told. I feel before you get confident in using a certain Risk to Reward ratio, one has to be confident in his/her strategy. your level of confidence in your strategy determines what kind of risk to reward strategy you'll use as a trader. I for one, prefers to use a 1:1 RR. and so far its been working as long as that's the only trade i take that day.

[@paulbrown5839]

Tight timeframes are better because you get statistically significant number of trades quicker. So you can assess your strategy in weeks rather than years.

[@Viewer13128]

it's not hard to transition if u've made enough day trading and then open another account for medium and long term trading. when u see medium/long term trades while day trading, u can just log in to the other account and enter or set a limit order and leave it. ur not stressed from waiting because ur still making more than enough day trading. after a while, u can do whichever one u want whenever u want.

[@piercarloscalamandre5204]

It's only a probability question. more reward less probability and viceversa. So, what do you about a risk/reward 4/1? in this way you will have a high winrate that for sure help the mind

[@jaysonp9426]

Only take advice from people who have what you want. I don't want to hold gold for three weeks while I work a full time job. Next.

[@quantumindicesfuturestrade6873]

Day trading is for single young men. Haha. Swings are better than being hypnotized by the screen all day . You really lose a lot of life.

[@OneCreator87]

moving to break-even with your entire position is the equivalent of using negative R:R ratio, so in the long run the odds are against you.

[@Trancer006]

I cant decide whether i want to have 20% WR with 1:10 R:R ratio, or 40% WR and 1:5 RR... anyone has suggestions?

[@danstylus1]

This set reminds me of Jerry Springer's

[@ValenTino-ze7lc]

My risk management : Risk per trade : 2% or 2 positions (1% + 1%) RR : 1 to 4 Winrate : 40% The trading goes be like : If the trade hit 1:2 i will TP a half and let another 1% running to whole RR ( 4 ) ..If it does hit 1 to 4 i will get 2:6 or 1:3 RR in total. Am i still good to go in the long run?

[@Cloppa2000]

Learning by swing trading is absolutely impossible. I can't wait weeks to find my trade lost or broke even! How does one learn from that? What's the point of breaking even after 3 - 4 weeks?

[@MrAmbrosse]

Patience.

[@domainnameguy]

Swing trading options is a much more relaxed enjoyable way to trade because you have the patience to let the stockmarket do the work for you and a person needs much less trades per month I probably make 10÷20 trades per month swing trading options and as i will usually be in an options call swing trade for approx 3 weeks or so it doesnt bother me what tge market does overnight or how it gaps eg gap up or down overnight as i only have to close the trade when in profitable enough to do so prior to option expiry date which creates a profitable trade

[@jayfosho8833]

Day traders hate holding over night? dude im a scalper and i wont sleep if i have a position live , i dont care if there is a stop loss or not , if im not concious i am not in a position . Gotta learn how to seperate investing / day trading.

[@GF86123]

Finally I found a trader who call it Reward-Risk Ratio not Risk-Reward Ratio!

[@Tr1Hard777]

Tomato tomato

[@VIEWMARY001]

what matters is the practicality not the way you say it :)

[@daltanionwaves]

The urge to be "busy" is my worst habit.

[@DailyBookInsights]

Dnt ask these question just test it urself

[@infinite8eyes]

Hi, I wanna ask: Let's say if I trade using 1:3 risk to reward ratio Buy at 10usd Sell at 9usd Target at 13usd Question: if the price goes up and you have 4 percent floating profit, do you do trailing stop? for example at 2 percent? Or just stick to the plan until hit 13usd as target? Thank you in advance! :)

[@b.7944]

I think 1:1 traders are not patient. They want quick returns. High R:R is essential in a random environment like stock market. Your setup must provide high R:R. If you fail constantly then it is not fault of R:R, there is something wrong about your entry.

[@checkoverstripes1464]

As a wyckoff smart money trader with very tight stopp loss as I like to enter at 15 - 30 seconds time frame, I found RR is everything Still be in profit even if the winrate is only 30 - 40 percent as I only wnter a trade if RR is 1:5

[@papabear90]

High win rate. And then high risk to reward. Is there such thing?

[@a.i.dimmer4616]

its better to have high RR as it forces u to look and wait for a good set up and may mean higher probablity...high win rate usually have poor RR and will even out ur losing and winning.

[@matthewwest-robinson7713]

Enjoyed this interview. Really interesting and gives me the motivation to stay patient and not close my trades out early! More like this please. Thank you.

[@27merk]

Both. High hit rate can be turned into low risk high reward (low hit rate). If you have a 1.5R, 80% hit rate, you can, with patience, turn that into 80% breakeven, 20%, 30R. e.g. If you have 80% hit rate, you need 2 trades to break even. So 40% of your trading is breaking even with 80% hit rate. Instead you spend 80% of your time breaking even and 20% on the high hit rate. It requires discipline and patience.

[@obasipeter2882]

When i tried swing trading I end up watching the trades in my dream 😂😂😂 I had to return to day trading for my mental health

[@thetaeater]

Is it just me or does the interviewer look like Paul Casey?

[@theofilostzinikos3584]

price action,fibonacci and 1 week time frame..

[@billfranz4488]

Systems with more than 3:1 I believe you need to ride the trend. Its harder to scalp 3:1 or more consistently.

[@deionsworld1035]

OK so I'm learning that win rate is jus as important as r:R ratio

[@BankNiftyChamaeleon]

My RR depend on where last candle close and what the possibility of how much point it move further up/down..I only think about SL/Entry if i get 1:1 than move SL to cost to cost ..and than trailing SL

[@BoersenCrashKurs]

The most retail traders are losing money, because of hectic acting. Just like me at the beginning of my career. The problem and also advantage of "swing" trading is the posibility to pay attention to fundamental analysis. The problem in this case is, that you have to have a specific knowledge to trade this way. While my friend has done in sum +30 pips a day, I go out with about +100. Best @ all traders out there :)

[@laputan_]

I liked the video twice it cancelled my like.

[@importedmusic]

There you go, take one from me.

[@Nitrokid88]

he wasn't day trading he's a scalper

[@Thenarayanaclips]

This is very interesting. Thanks a lot for sharing this with us.

[@banginzaza]

I give props to those who trade gold or any metals. Not for me. Lol

[@eightyfive6660]

Out of all the videos I've watched on UK spread betting this has been the most pointless interview. Maybe there is a hidden message not to trade like this guy because obviously trading is not for him because he has gone and got himself a proper job 😂

[@John-bz3wr]

Why does he say high risk:reward surely he means high reward:risk. They're complete opposites!

[@yosmuc]

It means high RATIO of Risk/Reward

[@extractorfan2143]

Like ying and yang

[@FMD023]

Swing trading is by far the most profitable strategy if u know your support and resistance. My swings max a week. Literally saved 2 years from going red. This past year be my first red year since Covid happened

[@greffett1969]

If you day trade on choppy days scalping you are not getting 2 to 1. 1 to 1 is only way on choppy days. If it works on choppy days it will work any day.

[@somakholhrg2805]

There is no better/Best trading style (Scalp, Day, Swing). Trade as you like, Your comfortable with. The most important thing is you are making profit and provide food for your family. Remember, we don't trade to have better lifestyle of trading, Easy, less stressful trade. We are here to make profit, if you make profit with any trading style that is all we need.

[@christinehoward6714]

Great Stuff. I started watching your videos last year as a beginner before giving stock market a trial. I was able to make $972,000 within 3 Months with a capital of $200,000. keep it up!

[@Spectre.007]

Is using monte carlo sim with these RRRs really help decision making on what RRR to implement

[@parusha11]

Lower win rate higer variance

[@Unduruz]

The end though where he just looks dead into the camera gets me so bad hahaha

[@jeezshai]

Market seeks liquidity, so it’ll eventually kidnap your stop loss before moving in your direction. For example a double top and bottom is shaking out early birds who’s gone to break even , and even sometimes wicking below or above the discipline traders who don’t go to break even .

[@scalpingfxnet3050]

really nice interview

[@sour3000]

Scalping is no joke.

[@rosariodipetta]

very interesting

[@sour3000]

He was a scalper

[@emmanuelleunamme9053]

He is the trader from "Traders: Millions by the minute" ? Did he manage the 50M ?

[@riccardoavantiela5147]

one of the best videos ive ever seen. makes much clearer for a beginner which kind of strategy you wanna trade. thanks alot

[@etaylor38]

You move stop to break even when in profit.

[@ryanmichaels9235]

etaylor38 no you dont neccessarily

[@ryanmichaels9235]

Held gold for 3 weeks?? Yeah not a trader. What crap z

[@ryanmichaels9235]

RANGE BARS?? BWHAHAHA NO FUCKING IDEA. No wonder this idiot has a day job

[@devoywilliams5549]

how is that working out?

[@evantrades]

No

[@no1aviator]

Don’t go above 2:1 and you should be all good