📊 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! 💼📈

#RiskRewardRation