#RiskRewardRatio The risk-reward ratio compares potential loss to expected gain.

It's used to assess if a trade or investment is worth it.

A common target ratio is 1:2 or higher (risk $1 to gain $2).

Lower ratios may offer less upside for the risk taken.

Traders use it to plan entries and exits more effectively.

Combining it with stop-losses improves risk control.

Consistent use supports smarter, more disciplined investing.

#RiskRewardRatio is key for long-term trading success.