What is the risk-reward ratio?
Risk to reward ratio is your profit divided by your loss.
Suppose you buy a stock worth 100 yuan
Stop loss when it falls to 90 yuan/take profit when it rises to 150 yuan
That is loss 10/gain 50, risk to reward ratio = 5
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The higher the risk-to-reward ratio does not mean the better!
It doesn’t mean that you won’t lose everything if your long-term risk-reward ratio is high.
"Risk-reward ratio" can only be regarded as a kind of
"Tools for long-term survival"
Suppose you enter the market with 100 yuan today
Stop loss of 99 yuan/take profit of 110 yuan = risk to reward ratio 10
What problems will you encounter?
You will encounter people who are easily kicked out of the game
Because the stop loss was set very close and was swept out of the market after a slight fluctuation.
So even if your risk to reward ratio reaches 10
You will also lose all your principal due to eating bamboo shoots frequently for a long time~
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Welcome to join low buying👗
The original intention of its establishment was to save its former self.
At that time, I had just entered the market and lost my salary from working for decades.
I think you, like me, hope to avoid detours in the market
When I first entered the currency circle, I looked here and there.
Buy courses in the east and spots in the west
In the end, we all suffered from the northwest wind😅
