What risk to reward do you trade with ?
RISK TO REWARD is the term used in stock market to indicate where how much one can a person risk his capital for the profit expected in a given stock.Eg- If 2000 is risked for a profit of 2000 then it is said as risk reward is 1:1 for that stock at that point.
Ideally at overbought / oversold condition, risk reward would be higher like 1:2 , 1:3 and so on.
FInally risk reward depends on person to person.
1:2 risk reward ratio is ideal for day trading