Quick Link: Risk – Reward Ratio

Jul 17, 2007: 9:49 PM CST

The Fresh Trader Blog recently simplified the concept of Risk/Reward Ratio into a simple post with informative graphics.

The blog is designed for newer traders and it offers very great basic information to get you started and provides references for more advanced students of the market.

Remember (quote):

In order to calculate the risk/reward ratio for any trade you make, you’ll need three numbers:

  1. Entry price
  2. Stop loss target price
  3. Stop profit target price

Check out the blog for the entire post, and many other resources for traders including a series on trading psychology.

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