Risk Reward Ratio: The Key to Success in Trading!

What is Risk Reward Ratio?

Risk Reward Ratio is the comparison between potential profit and potential loss in a trade.

How to Calculate Risk Reward Ratio:

1. Determine entry level, stop loss, and take profit.

2. Calculate potential profit (reward) and potential loss (risk).

3. Divide potential profit by potential loss to get the risk reward ratio.

Example:

If the potential profit is $100 and the potential loss is $50, then the risk reward ratio is 2:1.

Tips for Using Risk Reward Ratio:

1. Set a risk reward ratio that suits your risk profile.

2. Do not change the risk reward ratio too often.

3. Use the risk reward ratio as part of your trading strategy.

What is your favorite risk reward ratio? #RiskRewardRatio #Trading #Investment #ManajemenRisiko