#RiskRewardRatio Mastering the risk-reward ratio is crucial for successful trading. This ratio helps you evaluate how much risk you're taking for the potential reward. A common rule among traders is aiming for a minimum 1:2 ratio—risking $1 to potentially gain $2. This approach ensures that even with a 50% win rate, you can remain profitable over time. By calculating your risk-reward before entering a trade, you avoid impulsive decisions and stick to a solid strategy. Consistency and discipline are key. Remember, it’s not just about winning often, but winning smart. Make risk-reward your trading foundation.
#RiskRewardRatio