Post
Topic
Board Trading Discussion
Re: RISK and REWARD are not always correlated
by
joniboini
on 28/04/2020, 13:13:10 UTC
On the other hand, we can consider the risk and the reward as independent to the other. The thought that I was trying to convey, the book rather, is that the amount of reward/profit isn't always determined by how much the risk there is which is very unlike to what most of the people had believed.

It would be great if there's a mathematical equation to find where the golden point is. I agree with the idea, but practicing the calculation is difficult. DWYOR and DYOR is like doing a lot of work but you don't know which one is important and should be prioritized, which one is fine if you ignore it.

Most people seems to just throw a bunch of words about risk/reward without necessarily explaining why they do this or that.