Pls, would anyone explain to me the differences between Stop Loss and risk level or %?
A stop-loss is an order which you set with the broker which will cause your position to be closed if price reaches the level you specify.
Percentage loss is the amount of money as a percentage of your account capital if your stop-loss order is triggered.
Risk level doesn’t have a strict definition. Where did you see this?
Sorry, I mean risk ratio
Risk:reward ratio or r:r is the ratio of the money which you could lose in a trade to the profit which you might make.
So if you enter a trade and set a SL at -£100 and you plan to close it f its a winner at +£100, your r:r would be 100:100 which is 1:1. If you set a SL at -£100 but your profitable exit is at +£200, your r:r is 100:200 which is 1:2. And so on.
The r:r which you set at the start of your trade is just a plan, the actual r:r might be different. The planned r:r must be realistic and based on e.g. the strategy and chart pattern you’re using - its useless to set a SL at -£100 and plan to bank profits by closing the trade at +£2,000 if the chart suggests price will never get there.
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