#RiskRewardRatio Understanding the risk-reward ratio is essential for making smart investment and trading decisions. This ratio helps you evaluate how much potential reward you can earn for every dollar you risk. A common benchmark is 1:3—risking $1 to gain $3. High risk with low reward? Not worth it. Low risk with high reward? That’s ideal. By consistently applying risk-reward analysis, you can improve your chances of long-term profitability. It’s not just about winning trades; it’s about smart trades. Combine this with proper risk management and discipline to level up your strategy. Always trade with a plan. #RiskRewardRatio #TradingTips #SmartInvesting