This content was created by Kardec Trader. This content was uploaded by Kardec Trader. This is a YouTube video titled "WHY Pros Focus On Reducing Risk & NOT Chasing Reward 🚨" created on December 27, 2025, discussing the concept of risk to reward in financial scenarios, emphasizing the importance of reducing risk rather than increasing reward.
Risk to reward. It's called risk to reward but it's actually reward to risk because when people say risk to reward it's like two to one but the reward is two times and your risk is one. So it's more worth your time to focus on lowering your risk. Take two scenarios. The first scenario is going to be you increase your reward by $1. That means it goes from 4 to $5 and the risk remains the same $2. In this case your risk to reward is say 2.5. And the next scenario is going to be you keep the reward the same which is $4. You reduce the risk by $1. This was 44 plus 1 right here and kept it the same. This is 4 and 2 minus 1. In the first case I added 1 to the reward. The restored is 2.5. In the second case I kept reward the same. I reduced the risk by $1. It's $4. Mathematics.
