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10.4 Is Your Profit a Good Profit? – Quiz

1. What does the reward : risk ratio measure? *
2. You enter a trade and put in a 30 pip stop-loss. Your profit target has a 2:1 reward/risk ratio. Your target gets hit. How many pips have you made? *
3. What’s a good reason for exiting a trade early before it hits its full target? *
4. If your trade has a 40 pip stop-loss, and you exit at 80 pips. How many units of risk have you made? *
5. What reward : risk ratio would allow you to make at least the same amount you risked on a trade? *
6. Bonus question: is it possible to make a loss on your account if you have more winning trades than losing trades? *
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