Many traders debate whether having a good win rate is important or not. However, from a different perspective, a high win rate is needed to maintain the confidence of traders, which tends to decrease when their trades do not go as planned and they experience losses. So, how do we improve our win rate?
1 Conduct In-Depth Analysis.
To improve the win rate, we must conduct thorough analysis. Try to delve into the lengthy thought process of why we should take that trade. Don't just trade because you see 1-2 confirmations. Try reverse thinking and change your mindset before executing a trade.
2 Avoid FOMO.
When we desire a high win rate, FOMO is our greatest enemy. We must not trade just because we see opinions from people on social media. Avoid trading based on others' analysis, which is not supported by deep analysis.
3 Only Use Winning Formula.
Only use 'reliable strategies' when trading. For example, if you only trade new coins = focus only on new coins, or if your strategy is to trade only when there is a volume breakout = focus only on altcoins that breakout. Do not stray from your reliable strategy; it is better to have no trades than to incur losses.
4 Reduce Trading Frequency.
The more important thing is how many trades we win, not how many trades we make. When we only focus on the winning trades that we might achieve, we will not overtrade because it will lower our win rate.