Risk per Trade and Risk-to-Reward
Risk per trade defines the planned dollar loss if the idea fails. Risk-to-reward compares that planned loss with the potential gain being considered.
Risk per trade defines the planned dollar loss if the idea fails. Risk-to-reward compares that planned loss with the potential gain being considered.
Risk-to-reward compares the amount planned to be lost if a trade fails with the amount potentially gained if the objective is reached.