#RiskRewardRatio One of the most important concepts in trading is the Risk-Reward Ratio. This ratio allows you to measure how much you are willing to risk on a trade in exchange for how much you could gain. For example, a ratio of 1:3 means you are risking 1 unit to gain 3. Personally, I never enter a trade if the ratio is not at least 1:2. This allows me to maintain a good profitability, even if I do not win all my trades. Remember that a good ratio does not guarantee success, but it does improve your long-term odds. It's not about winning all the time, but about winning more when you are right.