#RiskRewardRatio

We’re diving into the third topic of our Risk Management Deep Dive – the Risk-Reward Ratio.

This key trading concept helps you assess the potential return of an investment compared to the amount of risk involved. Mastering this ratio can lead to smarter decision-making and more effective trading strategies.

👉 In your post, consider sharing: • How do you calculate and apply the risk-reward ratio in your trading?

• What tools or indicators help you determine it effectively?

• Any real-world examples where this ratio has impacted your trading outcomes?

💥Example: “✅For every trade I take, I aim for a minimum risk-reward ratio of 1:3. I rely on Fibonacci retracement levels to set both profit targets and stop-loss points. This method has significantly boosted my overall profitability by filtering out lower-quality setups.”