Want to trade like a pro? Then forget about luck and start counting.
One of the key indicators of a successful strategy is the Risk/Reward Ratio.
#RiskRewardRatio
This is the ratio between how much you are willing to lose and how much you want to earn in a trade. For example, if you risk $100 for a profit of $300 — you have an RRR of 1:3. This is already a sensible approach.
Why is this necessary? Even if you are right only 40% of the time in your trades, with a good Risk/Reward, you can still be in the green. Because one successful trade can cover several failures.
Beginner traders often chase after "getting in lower" or "quick profits," forgetting: it’s not about how much you earn, but how you manage risks.
Before each trade, ask yourself: is the potential profit worth the risk?
If not — pass it by.