#RiskRewardRatio

One of the most important tools for success in the world of trading and investment is understanding and correctly using the Risk/Reward Ratio. Simply put, this ratio defines how much you are willing to lose against what you hope to gain.

A simple example: If you risk $100 for a chance to win $300, the ratio here is 1:3, which is an excellent ratio.

A smart trader does not just look for opportunities, but for calculated opportunities. Even if you lose on some trades, maintaining a good risk to reward ratio helps you stay profitable in the long run.

Golden rule: Do not enter any trade if the ratio is not at least 1:2. Capital management starts here, not just from the timing of entry and exit.

Control your losses, and let your profits grow.

#RiskRewardRatio

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