#RiskRewardRatio
Mastering the art of trading starts with understanding the risk-reward ratio. It’s the backbone of every successful trading strategy. This ratio helps you evaluate how much potential reward you can earn for every unit of risk taken. For example, a 1:3 risk-reward ratio means you're risking $1 to potentially earn $3. This strategic balance ensures that even if you lose more trades than you win, your profits can still outweigh the losses. In crypto’s fast-moving markets, setting your targets and stop-loss levels with the right ratio helps you stay disciplined, reduce emotional trading, and boost long-term gains. Smart traders don’t just chase profits—they calculate them.