#RiskRewardRatio RiskRewardRatio Understanding the risk-reward ratio is crucial for every trader. It's not just about how much you can gain, but how much you're willing to lose. A good trader never enters a position blindly—they calculate the possible downside and make sure it’s worth the potential upside. A 1:2 or 1:3 risk-reward ratio is often preferred, meaning you're willing to risk 1 unit to gain 2 or 3. This keeps your trades sustainable even if you're not winning every time. Mastering this concept is what separates a gambler from a strategist