#RiskRewardRatio Understanding the risk-reward ratio is crucial for becoming a successful trader. Before I enter any trade, I always calculate how much I'm willing to risk versus how much I could potentially gain. A solid risk-reward ratio helps me stay disciplined and avoid emotional decisions. For example, I usually aim for at least a 1:2 or 1:3 ratio—risking $100 to potentially gain $200 or $300. This way, even if only half my trades are winners, I still come out profitable in the long run. Trading without a clear risk-reward strategy is like gambling. What ratio works best for you?