In the investment field, the risk-reward ratio is an extremely critical measure. It is like a ruler, measuring the potential returns we may reap when taking on risk. Simply put, the risk-reward ratio reflects how much risk we are willing to take to achieve a certain return. For example, in futures trading, some investors expect high returns and choose high-leverage trading, which means the risk is greatly increased. If market trends are unfavorable, they may suffer significant losses, but at the same time, the potential returns can also be quite substantial; whereas conservative investors prefer low-risk products, with limited returns, but the risks are within a controllable range. A clear understanding of the risk-reward ratio allows us to make more rational investment decisions, making appropriate choices based on our own risk tolerance rather than blindly following the crowd.

Profits that are dozens of times often come with the risk of losing everything. Without insider information, we should still remain vigilant in the primary market; being able to profit is already quite good.