#RiskRewardRatio

#RiskRewardRatio

The risk/reward ratio is one of the most important concepts for any successful trader. Simply put, before entering any trade, ask yourself: How much could I lose versus how much could I gain? If the risk is greater than the potential reward, think twice. Not every tempting trade is worth the risk. Many people lose because they focus on profit and forget to logically assess the loss. Set a clear plan, and stick to a ratio that serves your strategy. Sometimes the best trade is the one you don't take at all.