In the trading market, many novice investors overly focus their energy on how to accurately predict market trends. Some people's predictions may seem very accurate, but their accounts may not necessarily yield substantial profits.
It is generally believed that a win rate greater than 50% guarantees a win, but in reality, it is very difficult for ordinary people to achieve a win rate greater than 50%. Often, a win rate of 30%-40% can basically be considered as a skilled trader. The question arises, how can one profit with such a win rate?
This involves a concept called ---- profit-loss ratio.
For example:
Assume making 7 wrong trades, losing 3% each time, and making 3 correct trades, gaining 9% each time.