#RiskRewardRatio

Next up in our Risk Management Deep Dive series – let's talk about the #RiskRewardRatio

This concept is key for traders who want to weigh potential gains against potential losses before entering a trade. By mastering the risk-reward ratio, you can make smarter, more strategic decisions and fine-tune your trading approach for greater consistency.

I never enter a trade without at least a 1:3 risk-to-reward setup. I rely on Fibonacci levels to determine where to place my stop-loss and take-profit points. Sticking to this method has helped me filter out low-quality trades and stay profitable.