#RiskRewardRatio

One of the most overlooked but vital concepts in trading is the risk-reward ratio. Simply put, it helps you evaluate if a trade is worth taking. A solid strategy typically aims for a ratio of at least 1:2, meaning your potential reward is double your risk. This ensures that even if you’re right only half the time, you're still profitable. Managing this ratio helps you stay consistent and prevents impulsive, emotion-driven trades. It's not about winning every time—it's about making smart, calculated decisions over the long run. Master this, and you’re ahead of most. #RiskRewardRatio