#RiskRewardRatio
Did you know that **the risk-to-reward ratio** is one of the most important secrets of professional traders?
🔹 **What is it?**
A ratio that compares the expected profit to the potential loss in a trade.
The golden example: **1:2** (risking $1 to gain $2).
🔹 **Why?**
✔ Protects capital from significant losses
✔ Ensures higher profits in the long run
✔ Helps make more rational decisions
💡 **How to apply it?**
1️⃣ Define entry and exit points before the trade
2️⃣ Use stop-loss and take-profit orders
3️⃣ Stick to the plan and don’t get carried away by emotions
📊 **Shocking fact:**
90% of traders who do not use this ratio lose their money!
⚡ **Tip of the day:**
Start by analyzing your previous trades - was the risk-to-reward ratio in your favor?