#RiskRewardRatio The Risk-Reward Ratio is a crucial metric for evaluating potential trades and investments. It compares the amount of risk taken to the potential reward, helping traders make smarter, more informed decisions. For example, a 1:3 risk-reward ratio means you risk $1 to potentially gain $3—a favorable setup that can boost long-term profitability. Successful investors often look for trades with higher reward potential relative to risk, allowing them to remain profitable even with a lower win rate. By consistently applying a solid risk-reward ratio, you enhance your ability to manage losses and maximize gains. It promotes discipline and strategic thinking in both short-term trading and long-term investing. #RiskRewardRatio #SmartInvesting #TradingTips