The win rate can be a trap that misleads you in trading.
A buy-the-dip strategy wins often but hides catastrophic risks.
You could win 9 trades and lose all your profits in one.
By contrast, a trend-following strategy loses often, but its gains are huge.
You could lose 6 times and make up for all your losses with the profit from one trade.
Don't judge your strategy's success by its win rate alone.
Always compare the size of your profits with the size of your potential losses.
A buy-the-dip strategy wins often but hides catastrophic risks.
You could win 9 trades and lose all your profits in one.
By contrast, a trend-following strategy loses often, but its gains are huge.
You could lose 6 times and make up for all your losses with the profit from one trade.
Don't judge your strategy's success by its win rate alone.
Always compare the size of your profits with the size of your potential losses.
