Money Management is very important while trading stocks, forex, cryptocurrencies like bitcoin, ethereum, litecoin, etc…
With Risk Reward Ratio Calculator your know exactly the amount and quantity of your investment you can bet to respect your strategy.
Type your amount (could be dollars, bitcoin, euro…) and the percentage of risk you want to bet. Traders often use 2% so if you lose a trade, you accept to lose only 2% of your total account.
You can easily fill :
- your total account (could be dollars, bitcoin, euro…)
- the risk of your strategy (Traders often use 2% so if you lose a trade, you accept to lose only 2% of your total account)
- stop loss (the lower price at which you accept to sell before losing too much)
- buy price
- take profit (the price you want to sell)
You will see the amount and quantity you can bet to respect your trading plan.