Most traders believe that in order to have a great risk reward ratio on their trades, they need to have a tight stop – or at least as tight as possible. This makes sense of course. If you Risk 30 Pips to gain 300 pips, your risk reward ratio is better than if you risk 150 pips for the same 300 pips (10:1 vs 2:1). The tighter the stop, the better the risk/reward. Of course, the tighter the stop