#RiskRewardRatio **#RiskRewardRatio** is a fundamental trading metric that compares potential profit to potential loss before entering a trade. A **1:3 ratio** (risking $1 to gain $3) is ideal—ensuring profits outweigh losses over time. Key steps:

- **Set clear entry/exit points** using technical analysis.

- **Define stop-loss** to cap downside (e.g., below support).

- **Target take-profit** levels (e.g., at resistance or Fibonacci extensions).

Traders often filter opportunities by this ratio, avoiding skewed bets. Even with a 50% win rate, a positive ratio leads to profitability. Balance aggression with discipline—never risk more than 1-2% of capital per trade. 📊⚖️ #TradingPsychology #SmartInvesting