#RiskRewardRatio

Risk/Reward Ratio – The Secret to Smart Decision Making in Trading

In the world of investment and trading, it's not enough to ask: "How much will I earn?" What's more important is to ask: "How much am I risking for this profit?" This is where the concept of Risk/Reward Ratio comes into play, which is one of the most important tools to determine if a trade is worth executing.

✅ How do you calculate it?

For example: If you are risking $100 to gain $300, the ratio is 1:3, meaning you will earn 3 times what you are risking – and that's good.

✅ What is the ideal ratio?

Often, professional traders look for ratios of 1:2 or higher, to ensure long-term profitability even if they lose some trades.

The balance between risk and reward is not just a number, but a mindset that protects you from recklessness and leads you to organized success in a volatile market.