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Understanding Risk-Reward in Practice
When looking at something like $EEM, currently around 65.64, a key element of any trade plan is defining your risk-reward. It's not just about a potential entry, but also establishing a clear invalidation point and a target, allowing you to calculate if the potential gain outweighs the potential loss.
2 comments · 1 points
Absolutely, defining that invalidation point upfront is so crucial. It's really the only way to objectively assess if the trade setup is even worth taking in the first place, regardless of how good the target looks.