#RiskRewardRatio
The risk/reward ratio in any investment is an important measure. This ratio indicates how much loss you are willing to endure and what profit you expect in return. Ideally, a good strategy is one where the reward is at least twice the risk. For example, if you are taking a risk of losing $500, you should aim for a profit target of $1,000 or more. Making decisions with this ratio in mind can make your investments more effective and secure.