#RiskRewardRatio We compare the potential profit with the potential loss to make informed decisions.

To calculate it, we divide the difference (target price - entry price) by the difference (entry price - stop loss). I aim for a reasonable profit to loss ratio (for example, 1:2 or higher) before entering.

I use support and resistance levels, price patterns, volatility indicators, and Fibonacci to accurately determine stop loss and target points.

Example: A trade with a potential profit of 150$ and a potential loss of 50$ (ratio 1:3) made a profit, confirming the importance of this ratio in improving results.

Focusing on trades with a positive profit to loss ratio preserves capital and enhances profitability in the long run. What are your preferred ratios? Share your thoughts with us!

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