Risk To Reward Ratio In Trading

http://www.tripletradingprofits.com

Stuart McPhee and David Jenyns share their thoughts on the risk to reward ratio and how it applies in trading.

The risk to reward ratio is used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount of profit the trader expects to have made when the position is closed (i.e. the reward) by the amount he or she stands to lose if price moves in the unexpected direction (i.e. the risk).

This clip was taken from the Triple Your Trading Profits workshop, to find out more visit:
http://www.tripletradingprofits.com

Category:

Education

Tags:

• risk to reward
• risk to reward ratio
• risk management
• trading risk management
• managing risk

[djenyns]

Thanks for your support! Comments like your remind me why I do what I do :)

[patriotsundergod]

Love your videos David. Keep them coming!