📊 Understanding Risk to Reward Ratios
Risk-to-reward ratios are essential for managing your trades and achieving profitability:
1:1 Ratio: Requires a 51% win rate to break even. Suitable for tight trades with equal risk and reward.
1:2 Ratio: Lowers the required win rate to 34%. This balance offers a better risk management strategy.
1:3 Ratio: Needs only a 26% win rate, making it ideal for maximizing rewards with minimized risk.
🎯 Mastering these ratios will help you manage losses, improve consistency, and build long-term trading success!
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