#RiskRewardRatio

A key metric every smart investor and trader must understand. The Risk-Reward Ratio helps you evaluate whether a trade or investment is worth taking by comparing potential loss to potential gain.

For example:

Risking $100 to make $300 = 1:3 Risk/Reward Ratio — a favorable trade.

Why it matters:

It keeps emotions in check.

Helps build long-term profitability.

Supports disciplined decision-making.

Remember: High rewards are only worth it if the risks are managed wisely.

Master the ratio. Master the game.