One of the easiest ways to sabotage your trading—without even realizing it—is by ignoring your risk-to-reward ratio. With the Sonic System, this detail isn’t optional. It’s essential.

What’s a Good Risk-to-Reward Ratio?

Keep it simple:
✅ 1:1 (50/50) is acceptable
✅ Better than 1:1 (like 1:1.5 or 1:2) is ideal
🚫 Worse than 1:1 (e.g., 1:0.5) is dangerous

If you’re risking more than you’re aiming to gain, it only takes one losing trade to wipe out several winners. That’s not how you build consistency.

A Common Mistake to Avoid

Let’s say you enter a trade and:

• Your target is 5 ticks
• Your stop is 15 ticks

That’s a problem. You’re putting yourself in a position where even three perfect trades won’t cover one mistake. This kind of imbalance is exactly what the Sonic System is designed to avoid.

Use ATR for Smarter Trade Management

Start with a measured approach:

• Stop Loss: ~0.9 to 1 × ATR
• Target: ~1 to 1.5 × ATR

This setup gives your trades enough breathing room while still maintaining solid risk control. Avoid using extreme targets—like 10× ATR—which are unrealistic in fast-paced environments.

Winning Trades Usually Tell You Early

Here’s something most seasoned traders will agree on:

Good trades move in your favor quickly.

If the market doesn’t push your trade into profit right away—and starts moving sideways or against you—pay attention. That hesitation could be your cue to cut the trade early or exit near breakeven instead of riding it to a full stop-out.

Don’t Give Profits Back

Another pitfall? Overtrading.

Maybe your morning session went well. Great. But if you keep pushing trades into the afternoon without clear setups, chances are you’ll end up handing those gains back. Trade less, but trade smarter.

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Key Takeaways

• Always aim for a 1:1 or better risk-to-reward ratio
• Use ATR to keep your stop and target realistic
• Exit early if a trade stalls—protect your capital
• Avoid overtrading. Know when to walk away

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Ready to Level Up?

Visit DayTradeToWin.com to open a free member account. You’ll get trial access to tools like the ABC software, exclusive strategies like Sonic, and real price-action education that ditches the noise of traditional indicators.

Let’s start trading the right way.