Risk/reward ratio: This compares the potential profit from a trade to the potential loss. A common risk/reward ratio is 1:2: You risk $1 to potentially earn $2. Maintaining a favorable ratio ensures that yourwinning tradesare larger than your losing ones and this helps you achieve overall ...
The law of large numbers is a theorem that describes the result of performing the same experiment a large number of times. According to the law, the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more...