#RiskRewardRatio
Risk to Reward Ratio: The Key to Smart Investing Success
One of the greatest secrets of professional investors is that success is not measured by the number of winning trades, but by the quality of their decisions in managing the risk to reward ratio. This ratio (Risk/Reward Ratio) is the cornerstone of any smart trading strategy, as it balances what you may lose against what you may gain.
For example, if you risk $100 to achieve a profit of $300, the ratio here is 1:3 – which is an excellent ratio. This concept gives you a clear vision to evaluate the viability of the trade before entering it, and helps you avoid falling into random trades driven by emotion.
A smart trader does not only focus on gains but asks themselves: "Is this reward worth this risk?". By adhering to a reasonable risk to reward ratio, you can minimize losses, increase profits, and control your emotions when making decisions.
Make #RiskRewardRatio a fundamental standard for every market entry. Trading is not gambling, but disciplined calculations that lead you to sustainable success
