Risk, reward & expectancy: What you need to know!

Understanding the difference
For many traders Risk/Reward is the only trade management tool that matters. If the Risk/Reward is not greater than 1 then don’t take the trade. If the Risk/Reward (RR here on in) is low, say 0.5 the you should never take the trade. Don’t risk £10,000 to make £5,000 it never makes sense.