Will you risking your whole plate of biryani, just to win one spoon of plain rice.
Would you do it?
No?
Then why do you take trades with no proper Risk-to-Reward?
So,
What is Risk-to-Reward (RR)?
You risk a small part of your money to earn a bigger part.
If you risk $10 and the possible profit is $30 — your RR is 1:3.
If you risk $100 to make $100, your RR is 1:1.
If you risk $50 to make only $10. well, go back to trading school.
Why is RR So Important?
Because it tells you,
➡️ Is this trade worth it?
➡️ Can one win cover my losses?
➡️ Am I trading like a pro or like my cousin who YOLOs into every coin?
I once risked $100 to win $10 because someone shouted TO THE MOON!
Result?
My portfolio didn’t go to the moon.
It went to Mars, without oxygen.
Don’t be like that guy.
Questions
01. Can I win even with low win rate?
Yes. If your RR is 1:3, you can be wrong 70% of the time and still make profit.
It’s not about how often you win.
It’s how smart your wins are.
02. Should I always go for high RR like 1:10?
Not always.
High RR is good, but make sure your target is realistic and the trade setup is strong.
How to Use RR in Real Life
1. Decide your risk (how much you can lose)
E.g. $50
2. Choose your entry, stop-loss, and target
3. Calculate if it gives you at least 1:2 or 1:3 RR
4. If yes, GO.
If not, skip. No shame in skipping.
So what you learn?
Trading without Risk-to-Reward is like going to war with a spoon.
Be smart.
Risk small, win big.
Let your reward clap harder than your risk ever could.
Now go check your last 5 trades.
Did you use proper RR?
If not, you owe me a coffee.
Comment RR if this helped and stay tuned — Day 24 is coming the Last class.