#RiskRewardRatio

The risk-reward ratio is an important concept in trading that helps you assess the potential profit of an investment relative to its risk. By understanding and applying this ratio, you can make smarter decisions and optimize your trading strategy for better results.

• How do you calculate and use the risk-reward ratio in your trading decisions?

• What tools or indicators do you find most useful in determining this ratio?

• Share examples of how using the risk-reward ratio has impacted your trading outcomes.

An example of a post - “For each trade, I aim for a minimum risk-reward ratio of 1:3. I use Fibonacci retracement levels to set profit targets and corresponding stop-loss orders. This strategy has improved my profitability by focusing on trades that meet this criterion.