#RiskRewardRatio

The Risk Reward Ratio (RRR) is a fundamental tool for investors and traders. It helps to evaluate the relationship between risk and the potential reward of an investment. A healthy RRR is one where the potential reward is greater than the risk. For example, an RRR of 1:2 means that for every unit of risk, there are two units of potential reward. This helps investors make informed decisions and manage their risks effectively. By considering the RRR, investors can strategically and disciplinarily maximize their gains and minimize their losses always.