Balance is important in Gymnastics because there are lots of skills that require balancing. Especially the BALANCE beam, the gymnast is standing on a 4 inch beam and perfomring skills. they need to maintain their balance to stay on the beam to perform their routine. they also need to balance on the floor sometimes, like when they are doing handstands or skills on their toes, like turns.
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It is very important because It gets you higher points and Improves your dance on Beam/Floor.