#RiskRewardRatio

Understanding the #RISKREWARDRATIO is key in trading. It’s a simple concept: for every dollar you risk, how much do you expect to gain? A good ratio, like 1:3, means you’re aiming for $3 profit for every $1 risked. This helps manage losses and keeps emotions in check. For example, if you’re trading BTC/USD, set a stop-loss at $50 below your entry and a take-profit at $150 above. Over time, even if you win only 40% of your trades, you’ll still profit. Always calculate this ratio before entering any trade to stay disciplined.