18. What is the relationship between the winning rate and the profit and loss ratio of trading contracts?

I found that many small retail investors or old investors have a high success rate, but their accounts are not profitable. This is actually the second level of trading, which is called studying the real profit and loss ratio and success rate. They are really running some quantitative techniques, such as quantitative measurement based on loss, or trading based on the profit and loss ratio.

What he emphasizes is to have a success rate, but if your profit and loss ratio is really large enough, then it is actually not important to rely on the success rate! In fact, if your success rate is 30%~40%, you will find that you will make a lot of money, and what about some trading masters? You will find that its success rate is not high, but every time it loses, it will cut off a little bit, but if it makes money, it can make a very high return! This is the secret of the success rate and the profit and loss ratio. But for the question you just raised, I think this is a normalization, because the real human nature is to win small and lose big. So since it is a small win, then your success rate will naturally be high, but you won 9 orders but lost all of them if you lost one order. So why is it that retail investors who pursue the ultimate success rate will find it difficult to win money? The money is right here, so we actually need to grow synchronously. If your success rate is high, your profit and loss ratio must be adjusted to a profit and loss ratio that suits your success rate, then you will make money. Do you understand?