High win rates do not necessarily mean profitability; the win-loss ratio is the real key!

Many people believe that to succeed in trading, you need an extremely high accuracy in predictions?

From years of trading experience: "This is a misunderstanding". Don't spend too much time on "market predictions"; spend time on "risk control and capital management" to achieve twice the result with half the effort.

With a high win rate but no win-loss ratio and no capital management, you will still fail, and possibly fail even worse! Therefore, focusing more on expanding the win-loss ratio and capital management will yield better results. Striving to achieve "losing less each time and gaining more each time" is the most important. No trading strategy or skill that can 'maintain win-loss ratio' and 'capital management' will succeed, regardless of how high the prediction accuracy is.

Setting stop losses is easy, but determining a reasonable exit point after making a profit is much harder!

Therefore, you should prepare a trading plan according to your trading system, and exit according to profit-taking when the trend you are following changes.

After making a profit according to the trading plan, it is recommended to set the cost line as a forced exit point to ensure at least no loss.

With a certain floating profit space, you can moderately take profits to seek larger market movements, expanding the win-loss ratio! Then, match and choose according to your circumstances, and slowly improve your trading system!

Persist in execution to ensure consistency in trading!