#RiskRewardRatio RiskRewardRatio

Before entering any trade, it is essential to calculate the risk-reward ratio. This simple formula helps you determine whether a trade is worth it or not. For example, if you risk $100 to potentially gain $300, you have a 1:3 ratio, which is usually favorable. Many successful traders do not win more than 50% of their trades, but their risk-reward ratios keep them profitable. It is not about being right all the time, but rather that your gains exceed your losses. Good risk management, combined with this ratio, is key to long-term consistency.

#RiskRewardRatio