#RiskRewardRatio

⚖️ #RiskRewardRatio – The Golden Rule of Smart Trading

If you’re trading without a Risk/Reward Ratio in mind, you’re basically flying blind. This powerful metric is the key to long-term profitability, regardless of how many wins or losses you rack up.

What Is Risk/Reward Ratio?

The Risk/Reward Ratio helps you measure how much potential reward you’re aiming for, compared to how much you’re risking. For example, a 1:3 ratio means you’re risking $100 to potentially earn $300.

Why It’s a Game-Changer:

✅ Consistent Profits – Even if you win only 40% of the time, a good R/R ratio can still keep you profitable.

✅ Better Trade Selection – Forces you to look for quality setups with higher upside and limited downside.

✅ Emotional Control – With a solid R/R plan, you’ll stress less, knowing your risk is managed.

Pro Tip for Traders:

Never enter a trade without knowing your stop-loss and target. A minimum 1:2 ratio is considered smart, but many pros aim for 1:3 or higher.

Success isn’t about winning every trade—it’s about making sure your winners outweigh your losers.