#RiskRewardRatio

Winning trades don’t rely on luck—they’re powered by strategy and math. One key tool? The Risk/Reward Ratio. This simple formula helps you evaluate if a trade is worth taking. Smart traders aim for ratios like 2:1 or 3:1, meaning the potential profit is two or three times greater than the risk.

For example, risking $100 to potentially gain $300 is a 3:1 setup—a solid edge. Over time, even with a 50% win rate, you stay profitable.

Random bets lead to losses. Disciplined trades, guided by favorable risk/reward setups, build long-term success.