#RiskRewardRatio Understanding the #RiskRewardRatio: A Key to Smarter Decisions

Whether you're trading in the markets or making life decisions, the Risk-Reward Ratio is a powerful concept. It compares the potential loss (risk) to the potential gain (reward) before taking action.

Example: If you're risking $100 to potentially earn $300, your risk-reward ratio is 1:3 — and that’s favorable.

Successful investors and decision-makers don’t just focus on how much they can gain, but also what it might cost them.

Tip: Aim for trades or choices where the reward is at least twice the risk. That way, even if you're not always right, you can still come out ahead in the long run.

Master the ratio, and you master the game.

#RiskRewardRatio #InvestSmart #DecisionMaking #MindsetMatters