One of the simplest yet most effective concepts in Forex trading is the risk-reward ratio. This measures how much you’re willing to risk on a trade versus how much you aim to gain. A common recommendation is a 1:2 ratio, meaning you risk $1 to potentially gain $2. This ensures that even if your win rate is only 50%, you’ll still be profitable in the long run. Combine this with strict stop-losses and take-profit levels for disciplined trading. Remember, the key isn’t winning every trade—it’s making your winners bigger than your losers. Master risk-reward, and you’ll master the market.