#RiskRewardRatio The risk-reward ratio measures potential profit against potential loss per trade. Aiming for a 1:2 ratio (risking $100 to gain $200) ensures long-term profitability even with a 50% win rate. Start by identifying entry and exit points: if buying Bitcoin at $60,000, set a stop-loss at $58,000 (risk: $2,000) and take-profit at $64,000 (reward: $4,000). Avoid overleveraging, as it skews this ratio. Consistently applying a favorable risk-reward ratio minimizes losses during downtrends and maximizes gains in favorable markets. Discipline here separates successful traders from gamblers. #RiskRewardRatio