One of the most crucial elements of successful Forex trading is understanding and applying the risk-to-reward ratio. Before entering a trade, calculate the potential profit relative to the risk. A ratio of 1:2 means you're risking $1 to potentially gain $2, which ensures long-term profitability even with a 50% win rate. Avoid trades where the reward doesn't significantly outweigh the risk, as this exposes your account to unnecessary drawdowns. By sticking to favorable risk-to-reward setups, you can weather losing streaks while compounding your gains over time. Discipline is the key to sustaining profits.