Do you pursue profit-loss ratio or win rate?
The concepts of profit-loss ratio and win rate are not understood by many people:
Secondary traders, with 100 trades, have 90 profitable and 10 losing trades, resulting in a win rate of 90%. However, those 10 losing trades make them a losing trader with a 90% win rate. Primary investors/VCs, with 100 investments, have 95 profitable projects and a win rate of 5%. But those 5 projects all return multiples. Overall, they make a big profit.
Therefore, a high win rate does not equal making a lot of money, and it may even mean losing money. Similarly, a low win rate does not equal losing money; one must realize that in investing and trading, the basic principle should be to minimize losses during losing periods and to avoid large losses during profitable periods.
Although it sounds like nonsense, it really is a meaningful statement that makes sense despite sounding like empty words.$BTC $XRP