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The Complete Guide to Risk Reward Ratio (Guest Post)

The Complete Guide to Risk Reward Ratio (Guest Post)

Don’t be fooled by the risk reward ratio — it’s not what you think. You can look for trades with a risk reward ratio of 1:2 and remain a consistent loser (and I’ll prove it to you later).

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This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 457 followers.

Similarly:

You can look for trades with a risk-reward ratio of less than 1 and remain consistently profitable.

Why?

Because the risk-reward ratio is only part of the equation.

But don’t worry.

In this post, I’ll give you the complete picture so you’ll understand how to use the risk-reward ratio the correct way.

 

And after reading this guide, you’ll never see the risk-reward ratio the same way again.

Ready?

Then let’s begin…

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