#RiskRewardRatio RiskRewardRatio is a fundamental concept in trading and investing that helps assess potential profit versus potential loss. It compares the amount of risk taken to the expected reward—typically expressed as a ratio like 1:2, meaning you risk $1 to potentially earn $2. A favorable risk-reward ratio ensures that even with a lower win rate, you can still be profitable over time. Smart traders use this to plan entries and exits, protect capital, and make informed decisions. It’s about balancing ambition with caution—never risking more than what the potential gain justifies #InvestSmart #RiskManagement" nt #ProfitPlanning