Why risk/reward matters
At a risk/reward (target return ÷ stop-loss rate) of 2:1, a win rate above just 34% gives a positive expected value. Holding on without a stop-loss means one big loss can wipe out many gains. Setting target and stop-loss prices before buying is the simplest way to avoid emotional trading.
This tool is a reference calculator for taxes and returns, not an investment recommendation or stock pick. Tax rates and deductions follow 2026 law and may change. Investment decisions and their results are your own responsibility.