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Steve Burns, founder at New Trader University, explains that R-multiples are used to measure each trade in relation to its risk.
He references concepts from the book "Day Trading is Math: The Formulas for Profitable Day Trading in Any Market" and highlights the importance of risk-adjusted trade evaluation for day traders.
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Burns recently outlined risk management principles for traders ahead of the U.S. interest rate decision in a previous article. He has also emphasized that lasting financial freedom stems from saving and compounding, not spending for appearances, in an earlier commentary. These themes frame his approach to risk and trade evaluation.