#RiskRewardRatio The Risk-Reward Ratio (RRR) is a key concept in trading and investing that helps assess potential profitability versus the risk taken. It measures how much reward you expect to gain for every unit of risk you assume. For example, a 1:3 risk-reward ratio means that for every $1 you're willing to risk, you expect to make $3 in return. A higher ratio generally indicates better potential returns, but it also means you must manage risks effectively. Setting a balanced RRR is crucial for long-term success, as it ensures that gains outweigh losses, even if you win less often. Ultimately, a strategic RRR can guide smarter, more disciplined decisions in the financial markets.