#RiskRewardRatio I used to place trades just because I had a feeling "it would go up", without considering the risk/reward ratio. After a few account blow-ups, I started applying the Risk/Reward Ratio rule – at least 1:2. This means if I accept the risk of losing 10 dollars, then the potential profit must be 20 dollars or more. This helps me filter trades more carefully and not enter trades randomly anymore. Trading is not gambling; it is a probability problem. Better risk management is essential for the account to survive and grow.