#RiskRewardRatio Before entering a trade, ask yourself: how much am I willing to lose and how much can I gain? That is the essence of the Risk-Reward Ratio. Ideally, you should look for ratios of 1:2 or more, that is, risking 1 to gain 2. This not only gives you a margin of error but also allows you to have a winning strategy even if you are correct only 40% of the time. Most traders who fail do so because they risk more than they could gain. It's not just about trading well, but about trading logically. Manage your risk, maximize your opportunities.