Reverse Risk:Reward is how the world functions.

Reverse Risk:Reward is how the world functions.
Photo by 愚木混株 cdd20 / Unsplash

You know, it's interesting when you really think about how the world functions—it often revolves around a reverse risk-reward (RR) system. This concept actually applies to trading too, even though just about every person selling a trading course will tell you it's impossible or unwise. They push the narrative that aiming for a positive RR is the way to go because, let's face it, it's an easier sell. They'll say things like, "Just aim for a 1:2 risk-reward ratio, and bam! You can be wrong most of the time and still make money!" But they tend to conveniently leave out the crucial detail about the inverse relationship between win rate and risk-reward. The higher the reward you're aiming for compared to your risk, the lower your chances of actually hitting that reward.

Think about it in everyday terms. If you buy something with the intention of