Understanding the #RiskRewardRatio is crucial for every investor and trader. This strategy helps you assess the potential profit of a trade compared to the risk involved. A favorable risk-to-reward ratio ensures that even if some trades don’t go as planned, the ones that succeed will more than make up for the losses. A good rule of thumb is aiming for a ratio of 1:2 or higher, meaning the potential reward is at least twice the risk you’re taking. By carefully calculating your risk and reward, you can make smarter decisions and improve your chances of long-term success. #SmartInvesting #TradingStrategies #WealthBuilding