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Risk Reward Basics

Learn the core concepts behind risk/reward, position sizing, and structured trade planning so your process is repeatable.

Educational content only. Not financial advice.

Trade with a plan, not a guess.

Start with the guide, then use modules below to build a complete planning and review workflow.

Reward/risk compares planned upside with planned downside before you enter.

Why it matters: Setups with weak reward relative to risk are easier to skip early.

Reward/Risk = planned reward / planned risk

Position size decides how much capital you deploy and how much money is exposed.

Why it matters: Sizing errors can turn a good setup into bad account-level risk.

R-multiple standardizes outcome quality relative to the original planned risk.

Why it matters: It helps compare trades consistently across symbols and account sizes.

Realized R = realized P/L / planned risk amount

A stop loss marks where the trade thesis is invalidated.

Why it matters: Without invalidation, risk can expand unpredictably after entry.

Account risk links each trade decision to overall capital protection.

Why it matters: Small risk per trade helps preserve optionality through losing streaks.

Use a checklist to confirm symbol, levels, risk, and plan quality before execution.

Why it matters: Checklists reduce impulsive entries and missed planning steps.

Review closed trades weekly to compare planned versus realized outcomes.

Why it matters: Consistent review surfaces recurring mistakes and strengths.

Free focuses on pre-trade planning. Pro extends into outcome tracking and review.

Why it matters: A full loop helps you improve process quality instead of repeating patterns.

Free is ideal for disciplined planning. Pro adds defaults, outcomes, and weekly review.

Feature	Free	Pro
Risk/reward calculator	Included	Included
Position sizing	Included	Included
Risk/reward map	Included	Included
Symbol search / market context	Basic context	Full context
Saved trade plans	Up to 3 local plans	Unlimited saved plans
Pro defaults	Not included	Included
Advanced number format settings	Basic controls	Included
Trade outcome tracking	Not included	Included
Weekly review	Not included	Included
Export CSV / print / copy summary Print: planned	Copy summary	CSV + copy summary
Exposure summary	Not included	Included
Trade journal	Not included	Included
Future AI insights	Coming later	Coming later

Risk/Reward Ratio — Risk/reward ratio compares potential upside to downside before entering a trade.
Position Sizing — Position sizing converts your risk budget and stop distance into a share quantity.
Stop Loss Planning — A stop loss defines where your trade idea is invalid and where risk should be cut.
R-Multiple — R-multiple expresses profit or loss in units of initial risk so performance is comparable across trades.