#RiskRewardRatio Understanding the Risk-Reward Ratio is one of the most important skills a trader can develop. It helps you evaluate whether a trade is worth taking before you even enter the market. A simple 1:2 ratio means you're risking $1 to potentially gain $2. This way, even if only 50% of your trades are successful, you're still profitable. The key is consistency. Don’t chase high rewards blindly—balance your targets with realistic stop-loss levels. Smart traders don’t look for the biggest win; they look for the best ratio of risk to reward over time. That’s how portfolios grow. #RiskRewardRatio