Is this trade worth it?

Risk vs reward

Educational tool only — not financial advice. Assumes your stop fills at the stop price; gaps and slippage can make real losses larger. A good ratio doesn't make a bad setup good — the levels still have to make sense.

The R:R rule (30-second version)

• Never take less than 1:2. Risk $1 to make $2. At 1:2 you can be wrong 6 times out of 10 and still break even.
• The ratio decides the size. Know your dollars at risk first — then size the position so a stop-out stings, not kills.
• Targets need a reason. A 1:5 ratio means nothing if the target is at a price the stock has never touched. Levels first, ratio second.