#RiskRewardRatio Risk-Reward Ratios

1. *1:1*: Equal risk and potential reward.

2. *1:2*: Risk $1 to potentially gain $2.

3. *1:3*: Risk $1 to potentially gain $3.

Considerations

1. *Risk tolerance*: Adjust ratios based on your comfort with potential losses.

2. *Trading strategy*: Different strategies may require different ratios.

3. *Market conditions*: Adapt ratios to changing market conditions.

Benefits

1. *Risk management*: Helps limit potential losses.

2. *Profit optimization*: Potentially increases gains.

3. *Disciplined trading*: Encourages consistent decision-making.