#RiskRewardRatio One of the most important concepts in trading or investing is understanding the #RiskRewardRatio. It's not just about how much you can gain, but how much you're willing to lose for that potential gain. A good risk-reward ratio helps you stay disciplined and avoid emotional decisions. For example, a 1:3 risk-reward ratio means you’re risking $100 to potentially gain $300. Even if you're right only 40% of the time, you can still be profitable in the long run. Never enter a trade without calculating your risk and reward — it’s a critical step toward consistent success in any market.