#RiskRewardRatio

#RiskRewardRatio The risk-reward ratio is one of the most important tools in a trader’s toolbox. It tells you how much potential reward you can earn for every unit of risk you take. For example, a 1:3 ratio means you're risking $1 to potentially make $3. Smart traders always aim for higher reward than risk. This helps ensure that even if some trades are losses, the profitable ones will cover them and still leave gains. Using a proper risk-reward ratio can help build consistent profits over time. Always evaluate your trades with #RiskRewardRatio in mind before entering the market.