#RiskRewardRatio

#RiskRewardRatio: It's the compass guiding your trades. Don't chase high rewards without calculating the potential downside. A 1:2 ratio means risking $1 to potentially gain $2. Aim for ratios that favor you, like 1:3 or higher. Discipline is key; stick to your plan. Understand that higher ratios often mean lower win rates, so patience is crucial. Define your stop-loss and profit targets beforehand. This ratio isn't just numbers; it's about managing your capital and emotions. A well-defined risk-reward strategy separates gamblers from calculated traders.