Maximize Gains. Minimize Losses.
The Power of the Risk/Reward Ratio
What is Risk/Reward Ratio (RRR)?
It's the formula that separates pro traders from gamblers.
RRR = Potential Profit / Potential Loss
Let’s break it down:
1:1 – Risking $100 to make $100
1:2 – Risking $100 to make $200
1:3 – Risking $100 to make $300
Why it matters:
You can win only 40% of your trades and still be profitable — if your RRR is high enough.
A higher RRR means fewer trades needed to grow your portfolio.
Pro Tips:
Never enter a trade without a defined stop-loss and target.
Prioritize setups with 1:2 RRR or better — anything less may cost you in the long run.
Combine RRR with high-probability setups for ultimate edge.
Smart trading isn’t about being right every time.
It’s about making more when you're right than