#RiskRewardRatio

⚖️ #RiskRewardRatio – The foundation of every smart trade.

Understanding the Risk-Reward Ratio (RRR) is crucial in managing trades effectively. This ratio measures how much risk you’re taking for a potential reward. A well-calculated RRR can improve your overall profitability — even if you don’t win every trade.

📌 Example:

Let’s say you’re willing to risk $100 on a trade, and your target profit is $300.

That gives you a Risk-Reward Ratio of 1:3.

✅ Even if you win only 4 out of 10 trades with a 1:3 RRR, you're still profitable over time.

📊 Visual Representation:

(Graph representation below)

Trade # Risk ($) Reward ($) Outcome

1 -100 +300 Win

2 -100 0 Loss

3 -100 +300 Win

4 -100 0 Loss

5 -100 +300 Win

6 -100 0 Loss

7 -100 +300 Win

8 -100 0 Loss

9 -100 0 Loss

10 -100 0 Loss

Total Risked: $1000

Total Reward: $1200

Net Profit: +$200

🎯 The takeaway: You don’t need to win every trade. You just need the right Risk-Reward setup.

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