📘 Trading Words Explained #6
🧨 Risk-to-Reward Ratio (RRR)
💹 RRR tells you how much you're risking vs how much you aim to gain in a trade.
🔍 For example:
You're risking $10 to potentially make $30
That’s a 1:3 Risk-to-Reward Ratio
🎯 Why it matters:
Even if you're right only 50% of the time,
a good RRR can still keep you profitable 📈
🧠 Smart traders avoid setups with low RRR like 1:1 or worse.
They aim for 1:2, 1:3, or even more 🚀
💬 Tip:
Never enter a trade where your potential loss is greater than your potential reward ❌
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