Stocks for Breakfast | Finding Profitable Risk-Reward

Most traders know the term risk-reward, but not many know how to properly use it. In today's episode we discuss why smart traders struggle with obvious trade setups.

We've spent some time recently discussing the "optimal entry," but to get paid you need to take your trading game plan a step deeper.

You need to ask "What are the odds of my profit target being hit?" Each of us can pick a reward number (profit potential), but how do you buy stocks that have a high probability of reaching your target?

You've probably heard the term "but the rumor, sell the news." One of today's examples fits that wisdom today. The odds of a profitable trade in this stock with a great headline are low. A recipe for losing.

Today we reverse engineer two trades that show strong stocks, recent bullish price action, positive news, but --- they are trades that would pay you a dollar to earn one dollar.

Learn to time your entries better and you'll see massive improve to your trading account.