Without a doubt, the application of risk/reward ratio is very vital in trading in order that profit is maximized with as few winnings as possible, since it is apparently easier to lose than win. However it needs to be emphasized that a trade ending in greens, just don't come by mere wishes and a risk\reward ratio can only be as good as the fundamental and/or the technical analysis from which they're projected. Suffice to say that, you would have to get it right first with your analysis, for your risk/reward ratio to stand any chance.