#RiskRewardRatio Every smart trade starts with one question: is the potential reward worth the risk? The risk-reward ratio is your guiding star in the chaos of the market. Whether you’re entering a long-term investment or a short-term scalp, knowing how much you’re willing to lose versus how much you could gain is non-negotiable. A favorable risk-reward ratio—like 1:2 or better—ensures that even if you lose more trades than you win, you can still end up profitable. Discipline, patience, and calculated entries come from respecting this ratio. Don’t chase every setup—wait for the right one with the right numbers.