Risk-Reward Ratio, the ratio of profit to loss, is essentially about whether a trade is worth taking.

For example, if you plan to go long at 6000 with a stop loss at 5900, risking 100 U, then your expected profit should be at least 200 U, meaning you need to see the price rise to 6200 for this trade to be worthwhile.

We must aim to make big profits and accept small losses so that overall, you will end up profitable. In actual trading, a risk-reward ratio of 3:1 is considered a worthwhile trade; anything below 3:1 should be avoided. Except for some geniuses, it's difficult to profit solely through probability; we can only rely on a large risk-reward ratio.

The concepts of probability and risk-reward ratio are not only applicable in trading but also in many aspects of life. Just like when you're trying to flirt, if you say three things and only get one response, it indicates the other person isn't interested. If you stubbornly persist, you can only be seen as a backup plan.