šÆ RISK-REWARD RATIO: THE SECRET WEAPON OF SMART TRADERS
If you're trading without understanding risk-reward, you're basically gambling.
What is Risk-Reward Ratio?
Itās how much youāre willing to risk vs. how much you stand to gain.
Example:
Risking $100 to make $300 = 1:3 risk-reward ā solid.
Why It Matters:
1. You Donāt Need to Win Every Trade
With a 1:3 ratio, you can be right only 30% of the time⦠and still be profitable!
2. It Keeps You Logical
Youāll stop chasing every setup and only go for high-probability plays.
3. Risk Small, Win Big
Thatās how pro traders scale accounts without over-leveraging.
4. Itās About Math, Not Luck
A strong strategy + good risk-reward = long-term success.
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Pro Tip:
Always aim for at least 1:2 or better. Never enter a trade with a weak reward-to-risk setup.
Trade smart. Trade with purpose.