Understanding the risk-reward ratio is crucial for every successful trader. It helps you evaluate whether a trade is worth taking based on potential gain versus possible loss. A common rule is aiming for a ratio of at least 2:1—risking $1 to make $2. When trading assets like XRP, setting clear entry, stop-loss, and take-profit levels ensures disciplined decisions. Don’t let emotion override strategy. A consistent focus on favorable risk-reward setups can improve profitability over time and reduce impulsive trades.
Master the math, and let probability work in your favor.
