Is Trading a Game of Probabilities?
> "Can you lose 6 trades out of 10 and still end up profitable? How? Let me show you!
> Imagine you are risking 1% per trade, and your strategy gives you a Risk-to-Reward ratio of 1:3; meaning you risk 1% to make 3%.
> Now, imagine you took 10 trades: you lost 6 trades (-6%), but you won 4 trades (4 × 3% = +12%).
> Therefore: 12% - 6% = +6% net profit at the end!
> The goal in trading is not to win every single trade because it's impossible to always be right. The real goal is to protect your capital and ensure your winning trades outweigh your losing ones.
> That's why you must know your Win Rate and Risk-to-Reward ratio before you start trading. Trading is a probability game, not a game where you always have to be right. Judge your data before blaming your strategy!"
$IDOL
$INIT
$BTW
> "Can you lose 6 trades out of 10 and still end up profitable? How? Let me show you!
> Imagine you are risking 1% per trade, and your strategy gives you a Risk-to-Reward ratio of 1:3; meaning you risk 1% to make 3%.
> Now, imagine you took 10 trades: you lost 6 trades (-6%), but you won 4 trades (4 × 3% = +12%).
> Therefore: 12% - 6% = +6% net profit at the end!
> The goal in trading is not to win every single trade because it's impossible to always be right. The real goal is to protect your capital and ensure your winning trades outweigh your losing ones.
> That's why you must know your Win Rate and Risk-to-Reward ratio before you start trading. Trading is a probability game, not a game where you always have to be right. Judge your data before blaming your strategy!"
$IDOL
$INIT
$BTW
