#RiskRewardRatio

#RiskRewardRatio** The risk-reward ratio is one of the most important metrics when deciding to enter a trade. It helps to assess whether the potential gain justifies the risk taken. For example, a trade with a risk of losing R$100 and a chance of winning R$300 has a ratio of 1:3, which is considered excellent. Many traders seek ratios of at least 1:2 to ensure that, even with a modest success rate, the account remains positive. Understanding and applying this concept can be the turning point between consistent profits and accumulated losses in the long run. #RiskRewardRatio