#RiskRewardRatio One of the most important concepts every trader should understand is the risk-reward ratio. It’s the foundation of smart trading and long-term success. The ratio helps you evaluate how much you're willing to risk in order to achieve a potential reward. For example, risking $100 to potentially gain $300 gives you a 1:3 risk-reward ratio. By consistently aiming for favorable ratios, traders can stay profitable even if they lose more trades than they win. It’s not about being right all the time—it's about managing risk wisely and letting your winners outweigh your losers. Trade smart, not just hard. #RiskRewardRatio