🛡️ Risk & psychology · Lesson 3/7
Risk:reward and the trade plan
How to profit even when you’re wrong more often. · ⏱ 4 min
Before every trade ask: how much can I lose, how much can I gain? At least 1:2; 1:3 is good.
Example: entry 500, stop 480 (risk 20), target 560 (reward 60) = 1:3. Right only 4 times in 10: 4 × 60 = 240 gained, 6 × 20 = 120 lost → 120 net profit.
For learning only, not investment advice.