Risk Management Strategy For Trading

Here is the link.

Tell the story using my own words:

Given $10,000 capital to do day trading, set 2% as stop loss. Remember, 10 trades at most one day, if all of them fails, the total loss is 22%.

$200 for the loss of the trade.

Not a good trade

Profit per share  0.45
Stop loss per share 0.85

Keep ratio 2:1

Target price      $10.50
Entry price       $10.05
Stop loss price $9.20

Not a good trade - loss $0.85/ share to make $0.45/ share.  It should be like 2 : 1, not 1 : 2.

Good trade

Target price $130.00, you like to sell around $12.80, then it will be good, since ratio will be around 2: 1