# How to Protect Your Risk/Reward Ratio

Canonical: https://tradersdailydirection.com/how-to-protect-your-risk-reward-ratio/

Hey friend, Let’s see how markets have been moving before we head off for the long weekend.

## The Daily Direction

![](https://tradersdailydirection.com/wp-content/uploads/2023/09/Screenshot-2023-09-01-at-8.37.04-AM-1024x234.png)

**Note:** Most indexes – except the Nasdaq – closed slightly lower yesterday. While the recovery helped trim losses, it was still a losing month for stocks.

#### Labor Day $0.99 SPECIAL

Forget Microsoft and Google – there’s a tiny “backdoor” AI company that could be a WAY BETTER way to invest in the red-hot $15 trillion AI market.\[

![](https://tradersdailydirection.com/wp-content/uploads/2023/08/WarRoomAIPromo4-1024x683.jpeg)

\](https://gamemasterinvesting.com/war-room-holiday/?tambid=20714)[**Click here to get the details of this “$3 AI Wonder Stock” for only $0.99**](https://gamemasterinvesting.com/war-room-holiday/?tambid=20714)

## The Daily Nugget

**_Stop losses are what allow you to protect your risk/reward ratios._** In trading, you always want your potential upside to be much greater than the possible downside. That’s called having a favorable risk/reward ratio. But without the disciplined use of stop losses, you won’t be able to manage your downside and your risk/reward ratio. That’s why Ross Givens doesn’t make – or recommend – a single trade without a corresponding stop loss. Do the same, and your overall trading performance will only go up. _**The Traders Agency Team**_ **_P.S._** _As markets will be closed Monday, this newsletter will resume Tuesday. Have a fantastic weekend._