#RiskRewardRatio
Binance Square Post: #RiskRewardRatio
Title: Winning in Crypto Starts with the Right #RiskRewardRatio
Post:
Before you hit buy or sell, ask yourself:
Is the reward worth the risk?
That’s where the #RiskRewardRatio comes in — a key metric every trader should master. It helps you evaluate if a trade is worth taking based on how much you could gain vs. how much you could lose.
Here’s the simple formula:
Risk-Reward Ratio = Potential Loss : Potential Profit
Example: Risking $100 to make $300? That’s a 1:3 ratio — a solid setup!
Why it matters:
Keeps your strategy focused and disciplined
Helps filter out low-quality trades
Builds long-term profitability even with a 50% win rate
Pro Tip:
Aim for at least 1:2 or better. A good ratio doesn’t guarantee a win, but it stacks the odds in your favor over time.
Remember: Trading isn’t just about winning — it’s about losing smart.
What’s your ideal risk-reward ratio? Let’s talk strategy in the comments.