Many beginners obsess over achieving an 80% or 90% win rate, thinking that’s how they’ll achieve financial freedom.
In reality, when trading derivatives in crypto, a high win rate is often just a cover for huge losses: nine small wins can’t make up for one refusal to admit you’re wrong, leading to a cascade of liquidations. If you don’t have a hard stop-loss to cap the loss on each trade, the higher your win rate, the more certain it is that you’ll eventually be wiped out by a black swan event.
Market makers love “smart” traders who have high win rates but stubbornly hold losing positions. In a zero-sum game, the key to survival has never been how many times you were right, but how much your mistakes cost you. $BTC
In reality, when trading derivatives in crypto, a high win rate is often just a cover for huge losses: nine small wins can’t make up for one refusal to admit you’re wrong, leading to a cascade of liquidations. If you don’t have a hard stop-loss to cap the loss on each trade, the higher your win rate, the more certain it is that you’ll eventually be wiped out by a black swan event.
Market makers love “smart” traders who have high win rates but stubbornly hold losing positions. In a zero-sum game, the key to survival has never been how many times you were right, but how much your mistakes cost you. $BTC