Yes of course! Risk/reward ratio is extremely important. This is the ratio of money you are willing to risk for the expected return. Investors consider a risk/reward ratio of 2.0 to be very good. As you can see from the chart, this ratio is given by the amount you would gain or lose using my buy order and stop loss. If you buy at the suggested price and it goes back to the previous high, you would make 2x what you would lose if the stop order is triggered. I hope that clears things up!