Risk (R)
The dollar amount between your entry and your stop. This is your actual risk per contract.
If you don’t know your R, you don’t know anything. Plug in entry, stop, and target — get your risk (R), your reward, and your R-multiple.
Fill out the inputs and hit Calculate.
The dollar amount between your entry and your stop. This is your actual risk per contract.
Target minus entry. Shows your real dollar upside, not wishful thinking.
Reward ÷ Risk. If you don’t know this number, you are trading blindly.