The 2-to-1 Risk-Reward Ratio: 📈💡
When trading crypto, always aim for a 2-to-1 risk-reward ratio. This means for every dollar you're willing to risk, you aim to gain at least two dollars.
Why this rule?
Minimizes Losses:
You can be wrong more than 50% of the time and still come out profitable.
Maximizes Gains:
In the long run, you’ll earn more on your winning trades than you lose on your losing trades.
Example:
If you risk $50 on a trade, ensure the potential profit is $100 or more. This keeps your trades smart and minimizes the emotional rollercoaster of huge losses.
Master the 2-to-1 ratio, and you'll trade more confidently with a solid, long-term strategy!
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