#RiskRewardRatio Today I started reading about something called #RiskRewardRatio and at first it sounded a bit like complicated math to me, and math is not my strong suit! But I think I'm beginning to understand the general idea, and it seems quite important.

From what I've read, the #RiskRewardRatio is like comparing how much you could earn in a trade against how much you could lose if things don't go well. It's like asking yourself: "Is it worth risking this amount to try to gain that other?".

For example, if I'm thinking about buying a cryptocurrency and I think it could rise by $10, but if it drops, I could lose $5, then the risk-reward ratio would be like 1 to 2 (I risk $5 to gain $10). I've read that many say it's better to look for trades where the potential gain is greater than the potential loss, makes sense, right?

But of course, it's not always that easy to know how much you can actually gain or lose. The crypto market is super volatile, and things change in a second. So, how is this #RiskRewardRatio calculated in real life? Is it based on chart analysis, what people say, or a mix of everything?

I'm trying to see how more experienced traders apply this. It seems like a smart way not to take too many risks and to think a little before getting into a trade. If the potential loss is very large compared to what could be gained, it might not be worth the risk, right?

If someone who already understands the #RiskRewardRatio well has any simple advice for those of us who are learning, it would be great to hear it! Is there any "golden rule" or something like that to know if a ratio is good or bad? Let's keep learning together so we don't burn our few satoshis!