Australian (ASX) Stock Market Forum

risk/reward ratio

  1. X

    When is a Risk/Reward Ratio good?

    Hello, I have a generall question. When is a Risk-Reward Ratio good?
  2. Elextons

    Reward/Risk Ratio: useful or useless?

    Hi everyone When I calculate Reward:Risk Ratio. I always stuck in how to figure out the target price. For example, look at this chart. 1. entry from pivot low at 7.1 2. placed sell stop at 5.9 (under pivot low) 3. my Risk/Share = 1.2 4. Identify target price. Here comes the...
  3. V

    R/R Ratio and day trading ordinary shares

    I've got a question in regards to risk reward ratio. I can understand how the 3:1 ratio works in relation to leveraged instruments, but how is it possible to apply this ratio in day trading ordinary shares? Forgetting about leverage (I cringe at the thought of owing my life to the CFD game)...