There is a very popular goal to keep your risk/reward ratio at 1:2 or even 1:3
proportions. That means that trader is willing to risk for example 2$ per share and
expect to earn 4$ per share (1:2) or 6$ (1:3). If the risk/reward ratio is around 1:1, they do not enter a trade because it is not worth that risk.
proportions. That means that trader is willing to risk for example 2$ per share and
expect to earn 4$ per share (1:2) or 6$ (1:3). If the risk/reward ratio is around 1:1, they do not enter a trade because it is not worth that risk.
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