#RiskRewardRatio To be profitable in trading, it's not enough to win most trades; what really matters is maintaining a good risk-reward ratio. Let’s say you risk $100 on a trade with a potential reward of $300—this gives you a risk-reward ratio of 1:3. That means even if you win just one out of three trades, you still break even or come out ahead. A higher ratio increases your chances of long-term profitability. Without a solid risk-reward plan, trading becomes gambling. Always analyze your trades and only take positions where the potential reward justifies the risk.

#RiskRewardRatio