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Understanding Risk-Reward in Practice
When planning a trade, your risk-reward ratio is crucial; for instance, aiming for a move to 17.50 on $USDZAR with a stop below 16.70 gives a much better ratio than targeting a mere 17.00.
1 comments · 2 points
While the ratio is key, I've found it's equally important to assess the probability of hitting that 17.50 target. A great ratio with low probability can still lead to consistent losses.