#RiskRewardRatio What is the Risk-Reward Ratio?

It’s a way to measure how much you're risking vs. how much you could gain on a trade or investment.

🧮 The Formula:

Risk-Reward Ratio = Potential Loss : Potential Gain

Example:

If you’re risking ₹500 to potentially gain ₹1500, your risk-reward ratio is 1:3.

That means:

For every ₹1 you risk,

You stand to gain ₹3.

✅ Why It’s Important:

Helps you make smarter trades

Keeps your emotions in check

Lets you win even if you're wrong more than you're right.