#2026年比特币价格展望 What exactly is the risk-reward ratio? Simply put, it's the calculation of how much you earn when you win versus how much you lose when you fail.

Let's imagine a game: if you win, I give you 1000 yuan; if you lose, you give me 100 yuan—is this deal worthwhile? Can it be done? The core lies in the risk-reward ratio. From a mathematical perspective, the expected return determines whether this trade is worth it. But in practical trading, you also need to consider entry points, position sizing, stop-loss settings, holding periods, and hidden costs like trading fees, which make the risk-reward ratio more complex.

Before placing an order, during holding, adjusting positions, and after closing, you need to do the math—how much can you earn if you win this round, and how much do you risk losing if you fail. Most people stumble here:

**Chasing highs and killing lows**: Win fifty yuan, lose two hundred yuan. A single reverse move in the market can wipe out all gains.

**Mechanical random trading**: Win 0.98 yuan, lose 1 yuan. Ignoring market logic, opening dozens of trades a day with exchange fees of 0.2 yuan per trade, over time, eats away at profits.

**High leverage gambling**: With fifty yuan in your wallet, using ten times leverage to gamble. Winning can turn into hundreds of yuan, but one mistake and fifty yuan is gone, leaving no room to recover. If you happen to win once, you might put everything in again to aim for 100x—often, that’s how stories end.

**Debt all-in**: Betting everything when the market moves against you. Winning might land you on the Forbes list; losing ruins your credit record. Celebrating in high-end restaurants when you profit, waiting in line at the same restaurant when you lose.

Poor mindset = poor risk-reward ratio = bad operations = even worse risk-reward ratio—it's a vicious cycle.

Conversely, the proper approach is: when the risk-reward ratio isn't ideal, either don't trade or use small positions to test the waters. When the market truly offers a good opportunity like "winning a thousand, losing a hundred," then add stop-loss and reasonable leverage to your bets. This way, your mindset remains stable, your operations are steady, and your returns are consistent.