Risk / Reward is one of the main reasons traders fail because they risk too much to make such a small gain, before they are even in the trade there setting themselves up for disaster. E.g. A good trader should look for at least 3:1 Risk/Reward (See the image above) They are risking 20 cents to make 60 cents. However most traders either don't know the risk/reward or are to lazy to even calculate it.