#RiskRewardRatio ---

📊 What Is the Risk/Reward Ratio?

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🧮 How to Calculate It

1. Determine Entry Point:

2. Set Stop-Loss:

3. Set Take-Profit:

4. Calculate Risk:

5. Calculate Reward:

6. Compute Ratio: Divide the risk by the reward.

For example, if you're willing to risk $5 per share (stop-loss at $15, entry at $20) and aim for a $10 per share profit (take-profit at $30), the Risk/Reward Ratio is 1:2.

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📈 Interpreting the Ratio

1:1: For every $1 risked, expect to make $1.