#RiskRewardRatio The hashtag *#RiskRewardRatio* refers to a key concept in trading and investing that helps determine the potential profitability of a trade compared to its potential loss. 📊

📌 What is Risk-Reward Ratio?

The *Risk-Reward Ratio (RRR)* compares the amount of risk a trader is willing to take for a potential reward.

🧮 Formula:

```

Risk-Reward Ratio = Potential Loss / Potential Gain

```

✅ Example:

- You risk *50* to potentially gain *150*.

- Your *Risk-Reward Ratio* is *1:3* — for every 1 you risk, you could make3.

💡 Why It’s Important:

- It helps traders *plan smarter* entries and exits.

- Even if your win rate is low, you can still be *profitable* with a good RRR.

- Keeps *emotions in check*, focusing on calculated risk rather than gut feelings.

📈 Common Target Ratios:

- Conservative traders: *1:2 or 1:3*

- Aggressive traders: *1:5 or higher*, depending on strategy

Would you like help calculating the RRR for a specific trade or setting up a simple plan?