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SM Stock Market Method

The Risk:Reward Lie #shorts

TL;DR

Full video: https://youtu. be/KCsssegwYEI The Risk:Reward Lie.

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Where this fits in the Confluence Method

This lesson lives in the Stack step of the Confluence Method, where you confirm a key level and a trigger before a setup qualifies as a trade. It also reinforces the risk and psychology that let the edge compound over many trades.

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Full transcript

1 sections

0:00Every trader repeats the one to three riskreward advice and most lose money. Here's the math everyone skips. One to three riskreward only works at a sufficient win rate. With a 30% win rate, you need at least 1 to three to break even. With 60%, even 1:1 prints money. I broke down the expectancy formula on real numbers in the full video link in the description.