So, it is possible to beat the Red Knight just with strong equipment and skills, but there are some tricks to this fight. As a merchant, you may recruit a companion to fight in your place - though you'll have to learn a thing or two about the Knight first for them to win. If you fight by yourself, there is one very helpful thing. I won't write the full spoiler just yet, but have you noticed that the Red Knight only attacks with an axe - no bow, no magic? There are ways to exploit that!