#RiskRewardRatio

This is a key concept in trading and investing that compares the potential risk of a trade to its potential reward. It helps you evaluate whether a trade is worth taking.

For example, a risk-reward ratio of 1:3 means you’re risking $1 to potentially gain $3. The higher the reward compared to the risk, the more favorable the trade.

When applying this to #DiversifyYourAssets, it helps you:

Choose better assets: Allocate more to investments with a favorable risk-reward profile.

Avoid overexposure: Don’t risk too much on high-risk, low-reward trades.

Maintain balance: Diversification spreads risk, but risk-re