panchaphat
@neota
Risk Reward Ratio (RRR) Explained Risk Reward Ratio (RRR) compares potential profit and loss to decide if an investment is worth it. Example: Stock at $100 Target price $140 (+40%) Worst case $80 (-20%) RRR = 40% / 20% = 2 (Good) If bought at $120: Upside: +17% Downside: -33% RRR = 0.5 (Bad) If price drops to $90: Upside: +55% Downside: -11% RRR = 5 (Great) RRR is a powerful tool, but requires accurate target and worst-case price estimations. š
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