📊 How do you calculate the Risk/Reward Ratio?
If you are trading without considering the risk to reward, you are
playing with fire 🔥.
This ratio helps you determine whether the trade is worth the risk or not 💡.
🔢 The method is simple:
👎 Risk = the difference between the entry point and stop loss.
👍 Reward = the difference between the entry point and profit target.
✏️ For example:
If you are risking 10$ to achieve $30, the ratio is 1:3 ✔️
🎯 The golden advice: Do not enter a trade with a reward ratio less than 1:2
Capital management is more important than the number of trades. Trade smart, not randomly! 💼📈