. #RiskRewardRatio
Before entering any trade, smart traders always consider the risk-reward ratio. It tells you how much you could gain versus how much you’re willing to lose. For example, if you risk $100 for a potential reward of $300, your risk-reward ratio is 1:3. A good rule is to aim for at least a 1:2 ratio. This way, even if you lose some trades, your wins will cover the losses and bring profit. Calculating this ratio helps you take only high-quality setups, stay consistent, and avoid gambling. Long-term profitability starts with disciplined risk management. #RiskRewardRatio is your secret weapon in trading.