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).
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… …
