Risk-Reward and R-Multiples — Measuring Trades Properly
Measuring trades in money makes results incomparable — a $40 win on gold and a $40
Measuring trades in money makes results incomparable — a $40 win on gold and a $40
Win rate is the most quoted statistic in trading and the least informative. It is the
Every trader has drawdowns. What separates outcomes is not whether they occur but what the trader
Leverage is blamed for more account losses than anything else in retail trading, and the blame
A trader holding five positions at 1% each believes they are risking 5%. If four of
Position sizing protects you from any single trade. Loss limits protect you from yourself on the
Everything in this section reduces to a single page you write once and follow afterwards. The
Almost every trader who loses money knows what they should have done. They knew the position
Fear and greed get named constantly and explained rarely. They are not character flaws to overcome
Revenge trading is the pattern that ends accounts. Not slowly, through gradual erosion, but in an