#RiskRewardRatio The risk-reward ratio is the backbone of smart trading. It helps you measure potential profit against possible loss, guiding you to make calculated decisions—not emotional ones. A good trader doesn’t just chase gains—they manage risk with precision. Whether it’s 1:2 or 1:3, setting a favorable ratio ensures your wins outweigh your losses over time. It’s not about being right every time—it’s about making the right trades in the long run. Know your entry, set your stop-loss, and plan your exit. Let the numbers guide you, not the noise.