A risk-reward ratio compares how much you stand to lose on a trade to how much you stand to gain. It is arguably the most important number in your trading plan, because it determines whether your strategy can survive a normal losing streak.
Every trade starts with an order. The type of order you choose determines your entry price, your exit price, and whether your risk management plan actually executes when it matters.
Most traders obsess over entries and exits. The ones who survive obsess over how much they risk per trade. Position sizing is the single most important skill in risk management, and the 1% rule is where it starts.