Why we want to use R Multiples:

The theory:

Ensure you understand the risk you are prepared to take.

It will also prevent catastrophic damage to your account. (really important part)

Trading advice:

Do not ever stress if you get stopped out after defining the R.

By using small sizes; an exit at a small loss means you can try again with no fuss and maintain incredibly small risk to your account.

You absolutely must have strict Risk Management at all times. Never, ever disregard this. It needs to be at the forefront of every planned trade.

Always know the exit, and never move the stop..

Small losses have to be taken as part of the business of trading.

Eventually you capture the move (as long as you're using the technical + sentiment in harmony) and yes, it will require patience.

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An example how to calculate R

Let's enter short EURUSD at 1.1000

Our SL at 1.1020 (20 pips)

Our TP is 1.0940 (60 pips)

We divide the difference of these two values to determine R.

Here in this example we have 3R (which is the minimum you want to attain)

The higher the R multiple, the better the trade. (I had a 20R trade on gold, two weeks ago) ...

It keeps your trading in check with the strict Risk Management necessary in order to succeed long term..

Plus it will mean you never undertake any catastrophic trading mistake.