Risk-Reward Ratio – The First Filter Before Any Trade
🎯 Before entering any trade, check:
Risk-Reward Ratio = Potential Profit / Potential Loss
✅ Ideal ratio = 1:2 or better (Risk ₹1 to make ₹2+)
📌 Example:
Entry: ₹100, SL: ₹95 (Risk = ₹5), Target: ₹110 (Reward = ₹10) → R:R = 1:2 ✅
If target is only ₹104 (Reward = ₹4) → R:R = 1:0.8 ❌ (skip trade)
🧠 This discipline keeps losses small and winners big, even with a 50% win rate.
BAJAJ-AUTO
#WatchOutFor
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