#RiskRewardRatio

In trading, the Risk-Reward Ratio is your compass. It tells you if a trade is worth the risk — and it’s crucial for long-term success.

For example, risking $100 to make $300 means a 1:3 risk-reward ratio — solid ground. Many seasoned traders won’t take a trade unless the potential reward clearly outweighs the risk.

Why it matters:

Disciplines your entries

Keeps emotions in check

Builds consistency over time

Master the ratio, master your edge.