#RiskRewardRatio

Do you know what the secret to success in trading is?

It's simply: the risk-to-reward ratio - #RiskRewardRatio

For those who don't know, it's a measure that determines whether a trade is worth the risk or not.

A simple example:

If you have a risk-to-reward ratio of 1:3, it means you risk $100 to achieve $300.

Even if you lose two trades and win one, you are still profitable!

The higher the reward-to-risk ratio, the stronger your strategy.

But of course, you must be realistic and not chase illusions; the most important thing is discipline and controlling emotions.

Do you use the risk-to-reward ratio in your trades? What is your preferred ratio?

Share your opinion with us!