This week, I though we might revisit an important topic – risk vs. reward. Many new traders as well as those of us who have been around for a while never grasp this concept and apply it in their trading. Many simply look for a high win percentage and assume this will ensure their profitability. As you may have learned through experience, this is usually a ticking time bomb and road to ruin.
This video is by Dr. Van Tharp who explains the concepts of understanding risk in the form of multiples.
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