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How Risk-to-Reward Ratio Works In Trading
CAPITAL = $10K
RISK:REWARD = 1:2
RISK PER TRADE = $500
WIN RATE = 70%
LOSS RATE = 30%
NUMBER OF TRADES = 20/MONTH
WON TRADE = 14 = 14X500 = $7000
LOST TRADE = 6X500 = $3000
TOTAL PROFIT AND LOSS = 7000 - 3000 = $4000
MONTHLY PROFIT = 40%
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