#RiskRewardRatio **Master Your Trades with the Risk-Reward Ratio! ⚖️📈**
One of the most powerful tools in a trader’s toolkit is the **risk-reward ratio (RRR)**—it keeps me disciplined and ensures I only take high-probability trades. Here’s how I use it:
🔹 **My Strategy:** I never enter a trade unless the potential reward is **at least 2x the risk** (1:2 ratio). For example, if my stop-loss is 50 pips, my take-profit must be 100+ pips. This way, even if only half my trades win, I still stay profitable.
🔹 **Key Tools:**
- **Fibonacci Extensions** – Helps identify realistic profit targets.
- **Support/Resistance Levels** – Guides where to place stops and take-profits.
- **ATR (Average True Range)** – Ensures my stop-loss respects market volatility.
💡 **Real Impact:** Sticking to this rule has filtered out impulsive trades and improved my consistency. A losing streak hurts less when winners cover multiple losses!
**How do you use RRR in your trading?** Share your approach below! 👇