Before you enter a trade, ask yourself: Is the potential reward worth the risk? That’s where the Risk-Reward Ratio comes in.
Here’s how to use it wisely:
Aim for a ratio of at least 1:2 (risking 1 to gain 2)
Define your stop-loss and take-profit levels clearly
Don’t chase trades with poor ratios — protect your capital first
Smart trading is not about winning every time — it’s about winning more than you lose.
