Assessing risk is always beneficial, and having knowledge of t | QMALL

Assessing risk is always beneficial, and having knowledge of the precise coefficients to focus on makes it even more advantageous.

The risk and return index is a valuable tool for evaluating the potential of purchasing an asset, and calculating it is crucial.

Here's how to do it:
Start by subtracting the lowest price at which you're willing to keep the asset on the account (Stop Loss) from the purchase price (Entry Point).
Next, subtract the purchase price (Entry Point) from the value you anticipate (Profit Target).
Finally, divide the result from the first action by the outcome of the second action.

A detailed formula, along with an example, can be found in the images. So go ahead and scroll, learn, and apply!