Do you pursue win-loss ratio or win rate?
The concepts of win-loss ratio and win rate are not understood by many people:
Secondary traders, 100 trades, 90 profitable losses, the win rate is 90%. But those 10 losses make them a losing trader with a win rate of 90%. Primary investors/VCs, 100 investments, 95 projects profitable, the win rate is 5%. But those 5 projects return multiple times. Overall, they make a big profit.
So a high win rate does not equal making a lot of money, and may even lead to losing money. Similarly, a low win rate does not equal losing money, and it is important to realize that in investing and trading, one should try to ensure that losses are small during losing times and that profits are made while avoiding large losses as a basic principle.
Although it sounds like nonsense, it really is a sensible statement that seems like nonsense but makes a lot of sense.