#RiskRewardRatio Before entering any trade, smart investors evaluate the #RiskRewardRatio. This ratio helps determine whether the potential reward of a trade is worth the risk involved. For example, a 1:3 risk-reward ratio means you're risking $1 to potentially earn $3. By sticking to a favorable ratio, traders can maintain profitability even if some trades go wrong. The goal isn't to win every trade but to ensure that the wins are larger than the losses. Always calculate your risk-reward before committing funds—it’s a core principle of disciplined trading.