#RiskRewardRatio is considered crucial for any trader. Let's assume you decided to enter a trade when the price of Ethereum was $3300, and you set the stop loss at $3200, and the target at $3600. Here, the risk is $100 and the potential return is $300, meaning the risk-to-reward ratio is 1:3, which is ideal in the trading world.

The higher the return ratio compared to the risk, the greater the chances of making good profits in the long term, even if the success rate of trades is low. Therefore, it is important not to rely solely on technical analysis or news, but to have a plan.