#RiskRewardRatio

📍What is Risk-Reward Ratio?: It’s a measure comparing how much you could lose (risk) to how much you could gain (reward) on a trade.

📍Guides Smart Trades: A good ratio, like 1:3, means you aim to earn three times what you risk, making trades more worthwhile.

📍Manages Losses: It helps you avoid trades where the potential loss outweighs the gain, protecting your capital.

📍Encourages Discipline: Calculating the ratio before trading keeps you focused on logical decisions, not emotions.

📍Handles Volatility: Crypto markets are unpredictable, and a solid risk-reward ratio ensures you’re prepared for price swings.

📍Improves Profit Potential: Choosing trades with favorable ratios increases your chances of consistent profits over time.

📍Boosts Confidence: Knowing your risk and reward are balanced lets you trade with clarity and control.