Most traders focus on how much they can win — the pros focus on how much they can lose. Here’s why risk-to-reward matters.
What Is Risk-to-Reward Ratio?
It’s the ratio between potential loss and potential profit. A 1:2 ratio means risking RM100 to make RM200.
Why It’s Crucial
Even with a 40% win rate, a solid risk-to-reward setup can make you profitable.
How to Apply It
Always plan trades with a minimum 1:2 ratio — and stick to it.
Conclusion
Mastering risk-to-reward is one of the most powerful skills a trader can have.