The market is ruthless.
We usually like to keep an eye on the leaderboard of profits, seeing who made a few million and whose returns multiplied several times over.
But today I took a look at the leaderboard of losses. A quick glance at a few accounts showed cumulative losses of several million dollars, with some even nearing zero.
Even more interesting, some accounts had win rates above 60% and still ended up with huge losses.
What does this tell us?
A high win rate doesn’t mean you’ll make money; trading frequently doesn’t mean you have an edge.
A few words for traders:
The profit leaderboard shows who’s thriving; the loss leaderboard reveals the truth.
Ten small wins don’t make a victory; one liquidation can wipe it all out.
Making money in a bull market doesn’t make you great; staying in the game is what matters.
Trading isn’t about who makes money fastest, but who lasts the longest.
We usually like to keep an eye on the leaderboard of profits, seeing who made a few million and whose returns multiplied several times over.
But today I took a look at the leaderboard of losses. A quick glance at a few accounts showed cumulative losses of several million dollars, with some even nearing zero.
Even more interesting, some accounts had win rates above 60% and still ended up with huge losses.
What does this tell us?
A high win rate doesn’t mean you’ll make money; trading frequently doesn’t mean you have an edge.
A few words for traders:
The profit leaderboard shows who’s thriving; the loss leaderboard reveals the truth.
Ten small wins don’t make a victory; one liquidation can wipe it all out.
Making money in a bull market doesn’t make you great; staying in the game is what matters.
Trading isn’t about who makes money fastest, but who lasts the longest.
