In trading, the risk-to-reward ratio is the proportion of "how much you can afford to lose" to "how much you want to earn." I generally require that the profit is at least twice the loss. For example, if I plan to spend 100 yuan to buy a coin, I first decide that I can afford to lose a maximum of 20 yuan (if it drops to 80 yuan, I will sell), so the target must be at least 140 yuan (earning 40 yuan). This gives a ratio of 1:2 (loss of 20, gain of 40).

When watching the market, focus on the "highs and lows" of the candlestick chart: set the stop-loss below the recent low (if it breaks, take the loss), and set the take-profit above the recent high (if it reaches that, cash out). You can simply draw two lines to do this.

Previously, when buying a certain coin, the purchase price was 10 yuan, with a stop-loss set at 9 yuan (a 10% loss) and a target of 13 yuan (a 30% gain), giving a ratio of 1:3. Later, when it actually dropped to 9 yuan, I sold it. Although I incurred a loss, if it had risen to 13 yuan, the profit would cover three such losses. Over the long term, even with a small chance of winning, one can still make a profit; the key is not to let a single large loss ruin the account.