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→Risk/reward ratio
In many cases, market strategists find the ideal risk/reward ratio for their investments to be approximately 1:3, or three units of expected return for every one unit of additional risk. Investors can manage risk/reward more directly through the use of stop-loss orders and derivatives such as [https://www.investopedia.com/terms/p/putoption.asp put options].<ref>[https://www.investopedia.com/terms/r/riskrewardratio.asp#:~:text=The%20risk%2Freward%20ratio%20is,anything%20greater%20than%201%3A3. Risk/Reward Ratio: What It Is, How Stock Investors Use It], Investopedia</ref>}}
In many cases, market strategists find the ideal risk/reward ratio for their investments to be approximately 1:3, or three units of expected return for every one unit of additional risk. Investors can manage risk/reward more directly through the use of stop-loss orders and derivatives such as [https://www.investopedia.com/terms/p/putoption.asp put options].<ref>[https://www.investopedia.com/terms/r/riskrewardratio.asp#:~:text=The%20risk%2Freward%20ratio%20is,anything%20greater%20than%201%3A3. Risk/Reward Ratio: What It Is, How Stock Investors Use It], Investopedia</ref>}}
== Importance of taking risk in life ==
*[https://www.betterup.com/blog/how-to-take-risks Tired of playing it safe? Learn how to take risks that pay off]
*[https://www.briantracy.com/blog/personal-success/risk-taking-to-achieve-goals/ Why Risk-Taking Is Required To Achieve Your Goals], Brian Tracy International
*[https://www.linkedin.com/pulse/appetite-risk-taking-indicator-your-future-success-rajeev-mudumba/ Is Appetite For Risk Taking An Indicator Of Your Future Success?]
*[If You Want to Increase Your Success Rate, 2x Your Failure Rate]
*[https://www.morningcoach.com/blog/the-benefits-of-taking-risks The Benefits of Taking Risks], MorningCoach
*[https://www.sdstate.edu/ness-school-management-and-economicsblog/importance-taking-risks Importance of Taking Risks], South Dakota State University
=== Quote ===
"If you want to increase your success rate, double your failure rate." - Thomas J. Watson, the former CEO of IBM, who helped grow the company in its glory days.
== Taking risk in business and entrepreneurship ==
== Taking risk in business and entrepreneurship ==