📚The risk-reward ratio (or risk return ratio) measures how much your potential reward (or return) is, for every dollar you risk.
📚For example:
If you have a risk-reward ratio of 1:3, it means you’re risking $1 to potentially make $3. If you have a risk-reward ratio of 1:5, it means you’re risking $1 to potentially make $5. You get my point.
⚠️Now, here’s the...
What is risk-reward ratio — and the biggest lie you’ve been told:
📚The risk-reward ratio (or risk return ratio) measures how much your potential reward (or return) is, for every dollar you risk.
📚For example:
If you have a risk-reward ratio of 1:3, it means you’re risking $1 to potentially make $3. If you have a risk-reward ratio of 1:5, it means you’re...