#RiskRewardRatio #RiskRewardRatio

Risk Reward Ratio simply:

It's a measure that defines how much you're risking compared to how much you could potentially earn.

Practical example:

If you're entering a trade with a target of 60 points and a stop of 20 points,

then:

Risk Reward Ratio = 1:3

This means for every dollar you lose, you could earn 3.

The professionalism here is not in the profit percentage, but in your commitment to the equation.

Some people earn 40% from their trades but still make a large profit... and the secret? Capital management and this ratio.

A question for you:

What ratio are you working with in your trading?

Share your experience in the comments.