Risk/Reward Calculator

Risk/reward planning helps traders compare entry, stop, and target levels before deciding whether a setup is worth considering.

Why it matters

Good trading decisions start with knowing the risk, the position size, and the conditions that could change execution. A setup can look attractive and still be too large for the account.

Practical checklist

• Define the amount at risk before thinking about profit potential.
• Make sure the stop distance fits the market structure and the account size.
• Check spreads, major economic events, and session volatility.
• Record the trade plan and review the outcome in a journal.

Next step

Use the Firecore Trader calculators and guides to build a simple pre-trade routine you can repeat.