Accept a trader has $5,000 in the capital, and they have a fair win-rate of 55% on their exchanges. They risk just 1% of their capital or $50 per exchange. This is proficient by utilizing a stop loss. For this situation, a stop loss arrange is set 5 pips far from the passage price, and an objective is set 8 pips away. Reward/risk decides how much capital is being risked accomplish a specific benefit. Regardless of whether they just win half of their exchanges, they will be beneficial.