#StrategyTips The Importance of Risk-to-Reward Ratio in Every Trade A strong trading strategy isn’t just about winning trades — it’s about earning more when you win than you lose. The risk-to-reward ratio measures how much you’re willing to risk compared to your potential profit. For example, risking $50 to gain $150 gives a 1:3 ratio. This ensures that even if you lose more trades than you win, your overall results can still be profitable. Always plan trades with a favorable ratio and never enter setups that offer low reward compared to the risk.