📈"The trend is your friend until the end when it bends."— Ed Seykota

📊"In investing, what is comfortable is rarely profitable."— Robert Arnott

🎯"The stock market is a device for transferring money from the impatient to the patient."— Warren Buffett

🔍"Charts don't lie — they simply reflect the market's truth."— ChartStudio

💡"The market is never wrong; opinions often are."— Jesse Livermore

⚡"Price is what you pay, value is what you get."— Warren Buffett

📈"The trend is your friend until the end when it bends."— Ed Seykota

📊"In investing, what is comfortable is rarely profitable."— Robert Arnott

🎯"The stock market is a device for transferring money from the impatient to the patient."— Warren Buffett

🔍"Charts don't lie — they simply reflect the market's truth."— ChartStudio

💡"The market is never wrong; opinions often are."— Jesse Livermore

⚡"Price is what you pay, value is what you get."— Warren Buffett

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Concepts

Risk-Reward Ratio

How much you risk vs how much you gain

Risk-reward compares potential loss versus gain. A 1:3 ratio means you risk 100 to gain 300. Even with 40% win rate, 1:3 is profitable. Never take trades below 1:2. This single rule separates consistent traders from gamblers.

🔑 Key Takeaway

Always aim for minimum 1:2 risk-reward. You can be wrong 60% and still profit.

← Mean Reversion Position Sizing →

Disclaimer: The content on ChartStudio is for educational and informational purposes only. It is not investment advice. Please consult a qualified financial advisor before making any investment decisions.