Risk and Reward: Evaluate Before Trading

Many beginners often focus only on profit, forgetting about risk. Every time we enter a trade, we should have a clear Risk-Reward Ratio. For example, if you aim for a 2R profit, it means that if you risk 1 baht, you expect a return of 2 baht. Look at $NZDJPY at 94.67 today, trading within the range of 94.453–94.84067. If you enter a trade at this point, you must carefully calculate the stop-loss point and profit target. It's not just about seeing where the price will go, but knowing whether it's worth the risk. This is the core of basic risk management.