Don’t be fooled by the risk reward ratio — it’s not what you think. You can look for trades with a risk reward ratio of 1:2 and remain a consistent loser (and I’ll prove it to you later). This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 457 followers. Similarly: You can look for trades with a risk-reward ratio of less than 1 and remain consistently profitable. Why? Because the risk-reward ratio is only part of the equation. But don’t worry. In this post, I’ll give you the complete picture so you’ll understand how to use the risk-reward ratio the correct way. And after reading this guide, you’ll never see the risk-reward ratio the same way again. Ready? Then let’s begin… What is risk-reward ratio — and the biggest lie you’ve been told The risk-reward ratio measures how much your...