#RiskRewardRatio Understanding #RiskRewardRatio crucial in financial decision making. This is a comparison of potential gains to potential losses in an investment or trade. A ratio lower than 1 indicates that the potential gain is greater than the risk. Conversely, a ratio above 1 indicates that the risk is higher than the potential reward. Smart investors use this ratio to manage risk and maximize long-term profit potential. Don't forget fundamental and technical analysis as complements. #RiskManagement #SmartInvesting #TradingStrategy #FinancialLiteracy #InvestmentDecision