#RiskRewardRatio The risk-reward ratio is the ratio of potential profit to possible loss. In other words: how much you can earn against how much you are willing to lose. If you risk 100 to earn 300 — that's already not bad. But when you stake 500 to earn 50… well, that's already in the category of 'life is pain'.

The optimal ratio is 1:2 or even 1:3. This means that even with only 40–50% successful trades, you still remain in profit.

A humorous tip:)

Don't be that trader who enters at highs, places the stop under the pillow, and the take — on Mars. Risk/Reward is your GPS in the world of trading.