#RiskRewardRatio is a key concept in trading and investing. It measures potential profit against potential loss before entering a trade. A good ratio (like 1:2 or 1:3) ensures that rewards outweigh risks. For example, risking $100 to gain $200 means a 1:2 ratio. Traders use this to manage capital wisely—avoiding high-risk, low-reward setups. Discipline is crucial; even with a high win rate, poor risk-reward can lead to losses. Always set stop-loss and take-profit levels based on this ratio. Remember, consistency beats luck! Smart traders prioritize risk management—protecting capital ensures long-term success. #RiskManagement #RiskManagement #InvestSmart