🔴For every $1 of risk, you aim for $2 to $3 in profit. This means that if you're willing to risk 5%
When trading on any exchange, the percentage of profit you aim for should align with your overall strategy, risk tolerance, and market conditions. Here's a general guide for determining profit targets:
### 1. **Risk-to-Reward Ratio (R/R)** - **Common Ratio:** 1:2 or 1:3 - **How it works:** For every $1 of risk, you aim for $2 to $3 in profit. This means that if you're willing to risk 5% on a trade, you would target a 10-15% profit. This helps ensure that your winning trades outpace your l