Being right feels good. Being profitable is a different game entirely.
Here's the rule disciplined traders never break: never take a setup where the potential loss outweighs the potential gain, unless the win rate is high enough to justify it. A trader who wins 40% of the time can still come out ahead if the average win is bigger than the average loss. A trader who wins 70% of the time can still go broke if losses run larger than wins. It's the ratio times the frequency that pays the bills, not the ego boost of a correct call.
Watch this next: before entering anything, write down your risk and your target. If you can't state both in advance, you're not trading a plan, you're gambling on a feeling.
What's your minimum reward-to-risk ratio before you'll even consider a setup?
$AVAX $LINK $TRX #Trading #TradingEducation #Crypto #TA
Follow for daily trading education · Education only, not financial advice.
Here's the rule disciplined traders never break: never take a setup where the potential loss outweighs the potential gain, unless the win rate is high enough to justify it. A trader who wins 40% of the time can still come out ahead if the average win is bigger than the average loss. A trader who wins 70% of the time can still go broke if losses run larger than wins. It's the ratio times the frequency that pays the bills, not the ego boost of a correct call.
Watch this next: before entering anything, write down your risk and your target. If you can't state both in advance, you're not trading a plan, you're gambling on a feeling.
What's your minimum reward-to-risk ratio before you'll even consider a setup?
$AVAX $LINK $TRX #Trading #TradingEducation #Crypto #TA
Follow for daily trading education · Education only, not financial advice.
