#RiskRewardRatio

RISK VS REWARD: ARE YOU TRADING SMART OR GAMBLING?

Every trade is a decision. But not every decision is smart.

If you’re risking $100 to make $20, that’s not trading — that’s donating.

The Risk/Reward Ratio is your most powerful tool.

Most pros won’t enter a trade unless the potential reward is at least 2–3x the risk.

Here’s a quick guide:

• 1:1 = break-even zone

• 1:2 = decent

• 1:3+ = excellent

Don’t just look at profits. Look at the downside. If your win doesn’t cover multiple losses, the math works against you.

Your edge is not just your strategy — it’s the discipline to respect your ratios.