#RiskRewardRatio 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?

It’s how much you’re willing to risk vs. how much you stand to gain.

Example:

Risking $100 to make $300 = 1:3 risk-reward — solid.

Why It Matters:

1. You Don’t 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

You’ll stop chasing every setup and only go for high-probability plays.

3. Risk Small, Win Big

That’s how pro traders scale accounts without over-leveraging.

4. It’s 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.