{"id":30819,"date":"2013-09-09T19:28:40","date_gmt":"2013-09-09T23:28:40","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=30819"},"modified":"2023-04-17T11:44:52","modified_gmt":"2023-04-17T15:44:52","slug":"what-is-the-right-riskreward-for-my-trades","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades","title":{"rendered":"What Is the Right Risk\/Reward For My Trades?"},"content":{"rendered":"<blockquote><p>What is a good ratio to start out with, 2:1, 3:1?<\/p><\/blockquote>\n<p><strong>@mikebellafiore<\/strong><\/p>\n<p>I was asked this question during a recent Webinar, \u201cTrading Fundamentals: Things Great Traders Do and Never Do\u201d.<\/p>\n<div>\n<p>We teach our new traders to look for a risk\/reward of 1&#215;5. That means a downside of 1 for an upside of 5. More specifically you might risk 10 cents to make 50 cents. We do this so they are in the best and easiest trades when they begin. Remember, when you first start, this is the worst you will ever be as a trader.<\/p>\n<p>As a trader gains experience then they can look for smaller risk\/rewards of 1&#215;3 or 1&#215;2. As your risk\/reward becomes smaller you should expect your win rate to become higher.<\/p>\n<p>What is also interesting is that as you gain experience as an intraday trader, you will expand your Playbook to swing trades with a risk\/reward of 1&#215;10. So as you become more accomplished with your trading you will take more trades with a smaller risk\/reward and find longer time frame trades with a higher risk\/reward. This is your natural evolution as an intraday trader.<\/p>\n<p>Related blog posts:<br \/>\n<a href=\"http:\/\/www.smbtraining.com\/blog\/controlling-your-risk\">First Control Your Risk<\/a><br \/>\n<a href=\"http:\/\/www.smbtraining.com\/blog\/traders-ask-how-do-i-stop-losing-money\">Traders Ask: How Do I Stop Losing Money?<\/a><\/p>\n<p>You can be better tomorrow than you are today!<\/p>\n<p>Mike Bellafiore<\/p>\n<p><a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-Proprietary\/dp\/0470529407\/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1375715301&amp;sr=1-1&amp;keywords=one+good+trade\"><em>One Good Trade<\/em><\/a><\/p>\n<p><a href=\"https:\/\/www.amazon.com\/-\/es\/Mike-Bellafiore\/dp\/B08S2VSZPR\/ref=sr_1_1?keywords=the+playbook+mike+bellafiore&amp;qid=1681744864&amp;sprefix=playbook+mike%2Caps%2C152&amp;sr=8-1\"><em>The PlayBook<\/em><\/a><\/p>\n<p><a href=\"http:\/\/twitter.com\/mikebellafiore\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n<\/div>\n<p>No relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a good ratio to start out with, 2:1, 3:1? @mikebellafiore I was asked this question during a recent Webinar, \u201cTrading Fundamentals: Things Great Traders Do and Never Do\u201d. We teach our new traders to look for a risk\/reward of 1&#215;5. That means a downside of 1 for an upside of 5. More specifically you might risk 10 cents &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2444,2449,4703,2448,25,2451,4706,4707,1718,653,2445,1989,4712,4690,1888,207],"class_list":["post-30819","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","tag-daytrading","tag-how-to-be-a-day-trader","tag-learn-trading","tag-prop-trade","tag-riskreward","tag-stock-market-course","tag-stock-trading-education","tag-stock-training","tag-the-playbook","tag-trader-training","tag-trading-careers","tag-trading-course","tag-trading-courses","tag-trading-education","tag-trading-school","tag-trading-stocks","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is the Right Risk\/Reward For My Trades? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is the Right Risk\/Reward For My Trades? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"What is a good ratio to start out with, 2:1, 3:1? @mikebellafiore I was asked this question during a recent Webinar, \u201cTrading Fundamentals: Things Great Traders Do and Never Do\u201d. We teach our new traders to look for a risk\/reward of 1&#215;5. That means a downside of 1 for an upside of 5. More specifically you might risk 10 cents ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2013-09-09T23:28:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-17T15:44:52+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\"},\"author\":{\"name\":\"Bella\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\"},\"headline\":\"What Is the Right Risk\/Reward For My Trades?\",\"datePublished\":\"2013-09-09T23:28:40+00:00\",\"dateModified\":\"2023-04-17T15:44:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\"},\"wordCount\":232,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage\"},\"thumbnailUrl\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\",\"keywords\":[\"daytrading\",\"how to be a day trader\",\"learn trading\",\"prop trade\",\"risk\/reward\",\"stock market course\",\"stock trading education\",\"stock training\",\"the playbook\",\"trader training\",\"trading careers\",\"trading course\",\"trading courses\",\"trading education\",\"trading school\",\"trading stocks\"],\"articleSection\":[\"General Comments\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\",\"name\":\"What Is the Right Risk\/Reward For My Trades? | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage\"},\"thumbnailUrl\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\",\"datePublished\":\"2013-09-09T23:28:40+00:00\",\"dateModified\":\"2023-04-17T15:44:52+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage\",\"url\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\",\"contentUrl\":\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Is the Right Risk\/Reward For My Trades?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\",\"name\":\"Bella\",\"description\":\"Mike Bellafiore is a co-founder of SMB Capital, a day trading firm which takes great pride in its exceptional training program. SMB Capital is an equity prop trading desk that trades on 5th Avenue in New York City. Mr. Bellafiore is a graduate of the University of Connecticut School of Law. He has traded professionally for more than a decade.\",\"sameAs\":[\"https:\/\/www.smbtraining.com\/blog\/bellas-blog\"],\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/bella\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Is the Right Risk\/Reward For My Trades? | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades","og_locale":"en_US","og_type":"article","og_title":"What Is the Right Risk\/Reward For My Trades? | SMB Training","og_description":"What is a good ratio to start out with, 2:1, 3:1? @mikebellafiore I was asked this question during a recent Webinar, \u201cTrading Fundamentals: Things Great Traders Do and Never Do\u201d. We teach our new traders to look for a risk\/reward of 1&#215;5. That means a downside of 1 for an upside of 5. More specifically you might risk 10 cents ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2013-09-09T23:28:40+00:00","article_modified_time":"2023-04-17T15:44:52+00:00","og_image":[{"url":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","type":"","width":"","height":""}],"author":"Bella","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"Bella","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades"},"author":{"name":"Bella","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161"},"headline":"What Is the Right Risk\/Reward For My Trades?","datePublished":"2013-09-09T23:28:40+00:00","dateModified":"2023-04-17T15:44:52+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades"},"wordCount":232,"commentCount":0,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage"},"thumbnailUrl":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","keywords":["daytrading","how to be a day trader","learn trading","prop trade","risk\/reward","stock market course","stock trading education","stock training","the playbook","trader training","trading careers","trading course","trading courses","trading education","trading school","trading stocks"],"articleSection":["General Comments"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades","url":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades","name":"What Is the Right Risk\/Reward For My Trades? | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage"},"thumbnailUrl":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","datePublished":"2013-09-09T23:28:40+00:00","dateModified":"2023-04-17T15:44:52+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#primaryimage","url":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png","contentUrl":"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png"},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/what-is-the-right-riskreward-for-my-trades#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"What Is the Right Risk\/Reward For My Trades?"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161","name":"Bella","description":"Mike Bellafiore is a co-founder of SMB Capital, a day trading firm which takes great pride in its exceptional training program. SMB Capital is an equity prop trading desk that trades on 5th Avenue in New York City. Mr. Bellafiore is a graduate of the University of Connecticut School of Law. He has traded professionally for more than a decade.","sameAs":["https:\/\/www.smbtraining.com\/blog\/bellas-blog"],"url":"https:\/\/www.smbtraining.com\/blog\/author\/bella"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/30819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/144"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=30819"}],"version-history":[{"count":3,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/30819\/revisions"}],"predecessor-version":[{"id":53446,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/30819\/revisions\/53446"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=30819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=30819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=30819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}