#RiskRewardRatio #RiskRewardRatio

Understanding the #RiskRewardRatio is essential for every trader aiming to grow consistently. It’s not just about winning trades but making sure your rewards outweigh your risks. For example, a 1:3 ratio means risking $100 to potentially earn $300. This way, even if you lose more often than you win, your profits can still outshine your losses. Mastering this concept allows you to trade more confidently and make rational decisions. Never enter a trade without calculating your risk-to-reward first. Over time, this practice can significantly improve your success rate. Trade smart, not just often.