Why should you understand the concept of "Risk/Reward"?

For any trade you enter, you must ask yourself: Is the reward worth the risk?

👀 A simple example:

If the chance of making 10% and the chance of losing 20% → Bad trade.

If the chance of making 30% and the chance of losing 10% → Excellent trade.

Look for trades where the reward is greater than the risk.

(Usually, a ratio of 1:2 or 1:3 is considered good)