Report this content as inappropriate on the site:
Answer:
It is always best that you get compensated at least by the same amount of what you are risking. Meaning, you should have at least a reward to risk ratio of 1:1. Though, sometimes it is okay to have a lower reward to risk ratio if say you're scalping. Having a smaller reward:risk ratio when scalping allows you to capitalize on small price changes while giving your trade enough breathing room to pan out.
