📊 THE 1:2 RISK-REWARD STRATEGY
Before entering a trade, don't ask only:
👉 “How much can I make?”
Also ask:
👉 “How much can I lose?”
Example:
Entry = $100
Stop Loss = $98
Risk = $2
Take Profit = $104
Potential Reward = $4
So:
🛑 Risk = $2
🎯 Reward = $4
📈 Risk : Reward = 1 : 2
This means you are planning to target twice the amount you are willing to risk.
Always remember:
✅ Plan Entry
✅ Plan Stop Loss
✅ Plan Take Profit
✅ Check the Risk/Reward before entering
⚠️ A 1:2 setup can still lose. Risk/Reward does not guarantee a winning trade.
#Binance #RiskReward #TradingStrategy #Crypto
Before entering a trade, don't ask only:
👉 “How much can I make?”
Also ask:
👉 “How much can I lose?”
Example:
Entry = $100
Stop Loss = $98
Risk = $2
Take Profit = $104
Potential Reward = $4
So:
🛑 Risk = $2
🎯 Reward = $4
📈 Risk : Reward = 1 : 2
This means you are planning to target twice the amount you are willing to risk.
Always remember:
✅ Plan Entry
✅ Plan Stop Loss
✅ Plan Take Profit
✅ Check the Risk/Reward before entering
⚠️ A 1:2 setup can still lose. Risk/Reward does not guarantee a winning trade.
#Binance #RiskReward #TradingStrategy #Crypto