#RiskRewardRatio

Risk to Reward Ratio – The Secret to Smart Trading

In trading, success isn’t about risking your entire capital —

It’s about managing small risks for bigger rewards.

Let’s say you have $100 in your account.

You shouldn’t risk the full $100 on a single trade.

Instead, start small — risk $5 to $10 per trade (that’s 5% to 10%).

With a 1:2 or 1:3 Risk to Reward Ratio:

Risking $5 could earn you $10 to $15

Risking $10 could earn you $20 to $30

Example:

1:2 = $5 risk → $10 reward

1:3 = $10 risk → $30 reward

Even if you lose some trades, a good RRR keeps you profitable in the long run.

Trade smart, not all-in.

Small risk, big reward = a successful trader.

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